House Ways and Means Chairman Paul Ryan said Friday he is working on an $8 billion extension of a federal road-building fund to keep money flowing past a July 31 deadline and inch closer to the definitive, six-year highway bill that both parties want.
The White House and Democrats have pushed for a long-term extension of highway funds now, but the Wisconsin Republican said a five-month patch is the only way to build consensus for “a down payment” on tax reform that could cobble together the $90 billion needed to fill the gap between projected costs and expected revenues from the federal gas tax over the next six years.
Republicans refuse to raise the 18.4 cent-per-gallon gas levy. Instead, they’ve homed in on the bipartisan push for a one-time tax on business income lured back to the U.S.
Mr. Ryan said Democrats walked away during earlier attempts to close the deal.
“I think they now realize if you want to do a long highway bill, we’re going to have to do an extension,” he said.
Mr. Ryan said his short-term package will be “fairly innocuous,” although he didn’t reveal a funding source Friday.
SEE ALSO: Senate Dems to GOP: What’s your plan to fix crumbling highways?
Democrats pressured Senate Republicans Thursday to reveal their strategy for a long-term extension of highway funding, saying states are putting crucial road projects on hold because they don’t know if Congress will meet the end-of-month deadline.
Sen. Charles E. Schumer, New York Democrat, left the door open to a short-term fix through the end of the year, however, so long as enough members demonstrate they are serious about the type of international tax reform that would raise the cash needed for a six-year bill.
“We’re not going to prejudge anything in a vacuum,” he told reporters.
• Tom Howell Jr. can be reached at thowell@washingtontimes.com.
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