Senate Majority Leader Bill Frist (R-Tennessee) on June 18 told the National Federation of Independent Business (NFIB) that he and House Speaker Dennis Hastert (R-Illinois) have reached agreement on a path forward on the highway/transit reauthorization which could result in the bill being completed before the August recess.

Staff sources are indicating the two leaders may be planning to advance a bill which would set the funding level for the programs at $275 billion over six years. No one has indicated yet whether the White House has backed-down from its threat to veto any bill with a price tag over $256 billion.

It remains to be seen whether any enthusiasm can be generated amongst rank and file senators for a bill at this funding level. Obtaining a veto-proof majority at this level may be impossible if the pursuit of "equity" in the highway formula continues to be the foremost goal of Senate conference leaders.

We will be taking the pulse of key leaders on Capitol Hill on this issue in the days ahead and will have frequent updates.