On November 26, Senators Ernest Hollings (D-South Carolina), Susan Collins (R-Maine), Tom Carper (D-Delaware), Arlen Specter (R-Pennsylvania), Jim Jeffords (I-Vermont), and Joe Biden (D-Delaware) introduced ‘The American Railroad Revitalization, Investment, and Enhancement Act of the 21st Century’ (ARRIVE 21). In June, the Senate Commerce, Science and Transportation Committee approved a "placeholder amendment" to the committee's portion of TEA-21 reauthorization. The placeholder amendment would have established a rail infrastructure financing corporation (RIFCO) and authorized funding for Amtrak at $2 billion annually for six years. ARRIVE 21 will replace the placeholder amendment, as Senator Hollings, ranking member of the committee, is keen on including a strong rail component in a TEA-21 reauthorization bill.

The main element of ARRIVE 21 would create the Rail Infrastructure Finance Corporation (RIFCO), a non-profit, public-private partnership. RIFCO would be given the authority to issue $30 billion in tax-credit bonds over 6 years. RIFCO would use the proceeds of the bond sale to award discretionary and capital grants to states and Amtrak for high-speed rail and intercity passenger rail projects. Also, RIFCO would be authorized to provide state formula grants for freight capital projects. RIFCO would be able to fund projects involving planning and environmental review; rail line rehabilitation; upgrades and development; safety and security projects; passenger equipment acquisition; station improvement; and intermodal facilities development. Projects receiving RIFCO grants would be required to provide a 20% non-federal match. Proceeds from the non-federal match would be deposited in a bond repayment fund.

With respect to rail security upgrades, the bill provides $774 million to rehabilitate rail tunnels in New York, Baltimore and Washington, D.C. ARRIVE 21 also provides the Transportation Secretary with $515 million to improve the security of freight and intercity passenger rail.

ARRIVE 21 would also reauthorize Amtrak at $1.5 billion annually for 6 years. The $1.5 billion would be in the form of operational and capital subsidies and would be in addition to any funds that Amtrak might receive through RIFCO capital grants. Other Amtrak provisions would increase the accounting transparency of the railroad, require parity between Amtrak and all states for cost sharing on short distance services, have the Department of the Treasury restructure Amtrak debt and authorize a study of new methodologies to determine Amtrak routes and services.

The bill would also create a national rail policy at the national and state/local level. ARRIVE 21 defines the national passenger rail system as the existing service and high-speed rail corridors and authorizes $50 million for planning high-speed rail projects. Additionally, the bill directs the Federal government to develop a national rail plan and a “50-Year Intermodal Blueprint.”

Overall, ARRIVE 21 invests $42 billion in rail infrastructure and service to promote high-speed rail development, improve freight mobility and enhance intercity passenger rail service.

On November 25, Senators Jim Talent (R-Missouri) and Ron Wyden (D-Oregon) held a press conference with business, labor, and transportation leaders to demonstrate the growing support for their ‘Build America Bonds Act’ (S. 1109). The bill was originally introduced by the two senators on May 22nd and was referred to the Senate Finance Committee, where action on the bill has yet to be taken.

The bill would create the Build America Corporation, which would administer $50 billion in bonds in the current fiscal year (2004) to finance the construction of new transportation infrastructure projects across all modes of transportation, including roads, rail, transit, aviation, and water. Bond proceeds not used on qualifying projects in 2004 would be eligible for usage in 2005 and 2006. The bill does not identify how much individual states would receive in total from the derived bond revenue, although half the proceeds would be equally distributed among the states.

In addition to Senators Talent and Wyden, the bill has six co-sponsors: George Allen (R-Virginia), Saxby Chambliss (R-Georgia), Norm Coleman (R-Minnesota), Susan Collins (R-Maine), Elizabeth Dole (R-North Carolina), and Lindsey Graham (R-South Carolina).

At the press conference, Senators Talent and Wyden announced they have the backing of a "Bricks and Mortar Coalition", comprised of a multitude of groups, that support the Build America Bonds Act. The following groups have pledged their support for the bill: Associated General Contractors of America (AGC); American Association of State Highway and Transportation Officials (AASHTO); the National Stone, Sand and Gravel Association, U.S. Chamber of Commerce, National Asphalt Pavement Association National Heavy & Highway Alliance - Laborers’ Union, Operating Engineers Union, Carpenters Union, Iron Workers Union, Plasterers’ and Cement Masons Union, Teamsters Union, and Bricklayers Union.

Senator Talent commented, the “Bricks and Mortar Coalition will be instrumental to help move the bill through Congress on behalf of American jobs and the nation’s transportation infrastructure.” Ray Poupore, Executive Director of the Pavement Association National Heavy & Highway Alliance – Laborers’ Union added that “Build America Bonds would generate $50 billion in transportation infrastructure spending and create high-paying jobs for workers.”

Senators Talent and Wyden plan to offer the bill as an amendment to TEA-21 reauthorization legislation and emphasized the bond-generated revenues would be in addition to "current TEA-21 dollars."

Please see our analysis section for a further breakdown of the bill.

Over on the analysis side of the website we've just posted a look at the Omnibus Conference Report. From the piece:

The Consolidated Appropriations bill for FY04 fully complies with the fiscal parameters of the Budget Resolution and contains $328.1 billion in discretionary spending and $820 billion in total spending including mandatory funds...

Be sure to check out the whole piece for the latest info.

The House passed its version of the Medicare Prescription Drug bill on Nov. 22 by a vote of 220 yeas to 215 nays. The Senate passed their bill, S. 1 earlier today by a vote of 54 yeas to 44 nays.

The drug benefits in the prescription drug bill are the legislation’s best-known, most expensive and least controversial component. The bill will also fundamentally change the way Medicare works. It would create new competition for Medicare patients from private health plans, increase federal payments to doctors and hospitals, and end the tradition of charging everyone in the program the same fees for the same services. The final version, however, omitted the idea of making it easier for consumers to re-import U.S. manufactured drugs from Canada, where medicines are less expensive.

Democrats assailed the bill’s incentives for private competition as a threat to Medicare’s future and a giveaway to private health plans, insurance companies and pharmaceutical manufacturers.

The Medicare prescription drug plan would help many players throughout the health delivery system with provisions favorable to ambulance companies in outlying areas, home health services and hospitals that see a large number of indigent patients. It would offer higher payments to rural health care providers, a factor that greatly increased the plan’s prospects in the Senate.

The bill’s signature provision is a drug benefit that would take effect in Jan. 2006. Under the plan, the government would pay 75% of a beneficiary’s drug costs up to $2,250 each year. After that, the beneficiary would have to pay all drug costs out of pocket until their total spending reaches $3,600.