House and Senate conferees on the TEA-21 Reauthorization will meet at 3pm today (July 15) to review the House response to the Senate's offer on the overall funding level for the six-year bill. Rumors are rampant and cover almost every potential outcome. It appears to us the House will offer a six-year funding package between $285 and $300 billion -- depending on how you count.(The difference being whether you count "guaranteed" funding or "contract authority.")

While reports differ on the participation of House and Senate leaders in developing this proposal, it appears clear the White House has not yet expressed a view. So, this would appear to be another iteration of the "trial ballon" strategy from Capitol Hill. If they don't get a "no" from the White House in short order, Congressional leaders may view that as tacit approval.

Some Democrats have been sticking with the $318 billion number as the minimum acceptable level. Their concern is that advancing the bill at a lower number without White House approval is part of a "trap" which would get Congress into a negotiation with the White House between the new congressional number and the White House number. This would yield a result well below the new number from the conferees. This would repeat a pattern established on other major legislation in this congress.

We will have news for you as soon as it is available.