We are hearing numerous reports from sources on the House side of the Capitol indicating that a decision is near to drop the six-year authorization of TEA-21 and move an extension through September 30, 2005 instead. Apparently GOP members of the House T&I Committee met today (February 26) with White House Chief of Staff (and former Secretary of Transportation) Andrew Card and Mr. Card said the President would veto any legislation with a price tag over $270 billion. Mr. Card indicated, however, that the President did not want a fight on this and would accept the two-year extension with a funding increase in '05 above the '04 levels. Reports we hear indicate House leadership is leaning towards taking the deal on the two-year authorization and planning to come back to this issue next year.

In a related story, transportation newsletters are reporting today that House Majority Leader Tom DeLay (R-Texas) is threathening to offer his "SHARE" proposal -- to set the minimum allocation in the highway program at 95% of each state's contribution to the Highway Trust Fund -- on a two-year bill if it does come up. This would make passage of the extension more difficult.