August 9, 1995

Summary

H.R. 2002, the Department of Transportation and Related Agencies Appropriations bill, provides $12.6 billion in funding for FY 1996. This is $1.6 billion below current spending and $197 million below the House bill. The reduction is an 11.3 percent cut from fiscal 1995 spending levels. The major agencies funded by the bill include:

Title I _ Department of Transportation

U.S. Coast Guard;

Federal Aviation Administration;

Federal Highway Administration;

National Highway Traffic Safety Administration;

Federal Railroad Administration; and,

Federal Transit Administration.

Title II _ Related Agencies

National Transportation Safety Board;

Interstate Commerce Commission;

Panama Canal Commission; and,

Washington Metropolitan Area Transit Authority.

Major Issues

Amtrak

The legislation would cut both operations and capital funding for Amtrak.

Federal Aviation Administration

Air traffic controllers

Pay for air traffic controllers would be cut by 2.5 percent over the next two years. This pay cut would be taken out of a 5 percent pay incentive instituted several years ago in response to a labor strike by air traffic controllers.

Essential air service

The legislation would cut funding for essential air service programs and change the requirements for eligibility. Under the Committee's recommended levels, funding would not be available to points that are located fewer than 75 highway miles from the nearest large, medium, or small-hub airport, or to points that require a rate subsidy per passenger in excess of $200, when that point is less than 200 miles from a large, or medium hub.

Reform of procedures

The bill contains provisions that would reform both the procurement and civil service procedures of the Federal Aviation Administration. Reforms in these areas usually fall within the jurisdiction of the Senate Commerce Committee. These provisions have been considered a spur for the Commerce Committee to act in these areas.

Interstate Commerce Commission

The bill would provide for the termination of the Interstate Commerce Commission. Any residual rail and motor carrier functions would be transferred to the Department of Transportation. Handling of consumer complaints regarding household goods movers and review of rail mergers and acquisitions would be transferred to the Federal Trade Commission and the Department of Justice, respectively.

Mass Transit

The bill would cut funding for operating assistance for mass transit programs by 44 percent, which is a cut of about 14 percent more than the President's request. There is also a provision in the bill which stipulates that funding for mass transit programs in communities of less than 200,00 people would be cut by no more than 20 percent.

State Infrastructure Bank Accounts

The legislation would include a general provision to establish infrastructure banks. The bill language would allow States to establish State infrastructure banks to support any surface transportation project. It would transfer $250 million from the airport and airway trust fund to State infrastructure bank accounts. Only States establishing regional infrastructure banks would qualify for their set percentage of the $250 million. Further, each State may transfer up to 10 percent of its highway trust fund money into the regional infrastructure bank accounts.

Legislative History

The Department of Transportation and Related Agencies Appropriations bill, 1996, passed the House on July 25, 1995, by a vote of 361-61. It was reported by the Senate Appropriation Committee on August 4, 1995 by a vote of 28-0.

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U.S. Senate Democratic Policy Committee

Tom Daschle, Chairman; Harry Reid, Co-Chairman

Washington, DC 20510

E-mail: Postmaster@DPC.Senate.gov

Info@DPC.Senate.gov

Tom_Daschle@Daschle.senate.gov

URL: ftp://ftp.senate.gov/committee/Dem-Policy/general/dpc.html