The House and Senate conferees on the TEA-21 reauthorization met today to hear a proposal from the House for the overall spending level. The House proposal, presented by Rep. Bill Thomas (R-California), Chairman of the House Ways and Means Committee, would provide $299 billion in contract authority and $284 billion in guaranteed spending. Rep. Thomas said the Speaker of the House would support a bill with this number and that the President would sign it.

Sen. Jim Inhofe (R-Oklahoma), the Conference Chairman said this proposal would be rejected by Senate conferees if there were a vote on it today. Nevertheless, he asked the staff to continue to work over the recess to see if it is a basis for moving forward. Sen. Jim Jeffords (I-Vermont), said that somewhere between the House offer and the Senate offer ($318 billion) a solution might emerge. Rep. Jim Oberstar (D-Minnesota) indicated he thought the offer represented progress and that he hoped that in September further progress could be made in boosting the number.

Rep. Thomas responded to these hopeful comments by saying an increase in the number he proposed should not be discussed, because nothing higher could be signed by the President.

The leaders of the conference directed staff to talk over the August recess about how progress might be made.

In the meantime, an extension through September 30 of the existing program has begun moving. Final action on the extension is expected before Congress departs for its five-week recess tomorrow.

We will have further thoughts and reaction to today's meeting soon.