Congress Approves a $127 Billion Transportation and Student Loan Package

http://www.nytimes.com/2012/06/30/us/politics/congress-approves-transportation-and-student-loan-package.html

The final $127 billion package angered fiscal conservatives and liberal environmentalists alike, but leaders in both parties — along with many rank-and-file lawmakers — wanted to put the issues behind them.

Exhausted members of both parties pointed to the legislation as a tonic for the ailing job market, as well as proof that an unpopular Congress could get something done. The House passed it by 373 to 52, the Senate by 74 to 19. All the no votes were by Republicans.

The transportation legislation extends federal highway, rail and transit programs for 27 months, authorizing $120 billion in spending, financed by the existing 18.4 cents-a-gallon gasoline tax and the 24.4 cents-a-gallon diesel tax, as well as about $19 billion in transfers from the Treasury, according to Taxpayers for Common Sense, a watchdog group. That was a retreat for many House conservatives, who had vowed to scale back or eliminate those taxes and shift responsibility to the states.

The $6.7 billion student loan provision extends the current 3.4 percent interest rate on Stafford loans for one year, financed by changes in pension laws and a restriction on the length of time students could get those loans. The flood insurance program increases premiums and requires people living near levees to have coverage.

For Republicans, the huge measure violated a number of promises that the new leadership had made to the Tea Party-fueled electorate that brought it to power.

During the 2010 campaign, Republicans taunted Democrats for enacting laws like the health care legislation that were too long to read. At 596 pages, posted on Thursday night, this one could not have been read by many.

With only 29 days left on the House’s legislative calendar before the election, the real work of the 112th Congress may be done, at least until a lame-duck session that will be devoted to heading off a fiscal disaster on Jan. 1. That leaves three significant bills passed by the Senate in limbo: a major overhaul of federal farm programs, a revamping of the Postal Service and an expansion of the Violence Against Women Act.

But with a deadline looming and no one wanting another short-term punt, both parties compromised. Republican leaders once again dropped the Keystone XL oil pipeline provision, which would have mandated construction over the Obama administration’s objections, as well as a provision passed by the House blocking new regulations of coal ash. Senate Democrats excised $1.4 billion set aside for land and water conservation.