DC Update: House Transportation Committee Ponders Upping Fuel Taxes, Airport Fees

Work begins on infrastructure package; hearings on FAA reauthorization slated

Congress made several moves this week on issues important to the remote-production industry. On Tuesday, the Senate confirmed Elaine Chao as Secretary of Transportation by a vote of 93-6.

On Wednesday, the House Transportation Committee kicked off a new infrastructure package. Representatives from a wide-ranging group of business and labor interests testified before the committee on what they think 21st century infrastructure entails.

In terms of paying for the projects, many groups stated that money generated through public-private partnerships is not enough. FedEx CEO Fred Smith argued for increasing gasoline and diesel taxes to make up the difference.

Ranking Member Peter DeFazio (OR) outlined his plan for paying for infrastructure projects.

Not surprisingly, the committee’s top Democrat, Peter DeFazio, agreed. At the hearing, he provided a broad outline of a plan he is drafting to expand on existing user fees to pay for infrastructure projects, including indexing the gas and facility charge for airports. Such changes would surely increase costs for smaller companies in the cargo and remote-production industries.

This week, the House Transportation Committee also announced five hearings on reauthorizing the FAA. As of Thursday, FAA reauthorization expires in 240 days. The hearings are set to begin next month and will address each major section of the bill.

Thursday marked the 85-day countdown until DOT appropriations run out and the 1,337-day countdown until highway and transit policy is up for renewal.