Conference Chairman James Inhofe (R-Oklahoma) introduced a compromise funding level at the TEA-21 House-Senate Conference meeting this morning. In it, Inhofe offered a motion that would provide $301 billion in contract authority and $289 billion in guaranteed spending over six years. As you will recall, the Senate’s SAFETEA bill calls for $318 billion in contract authority and the House-passed TEA-LU calls for $284 billion in contract authority. Inhofe stated that this funding level will guarantee a 94 percent rate of return to states on gas tax funds. Chairman Inhofe called for a vote on this compromise when the conference committee meets next at 11 am on July 22.

Inhofe’s proposal drew skeptical reaction from Rep. Don Young (R-Alaska), Chairman of the House Transportation and Infrastructure. While calling it a “discussable offer,” Young was concerned that the proposal gave the chairman too much power to reconcile Senate-House discrepancies. Senator Harry Reid (D-Nevada) said he was “very, very concerned” with the level of funding Inhofe had proposed. Reid described the funding for transit as make or break for many Democratic senators. Other conferees tried to put a positive spin on their comments, but it was clear that finalizing the financing issue by Thursday’s meeting will be difficult.

There were no discussions on the length of the required program extension which expires at the end of July. Congress must pass an extension before they recess for the month at the end of this week.

We will post updates when new information becomes available.