The Wall Street Journal – House lawmakers appear unlikely to reach agreement this summer over how to pay for a major transportation bill, disappointing state governments, transit agencies and construction companies hoping for a big boost in funding.

At a House hearing on Thursday, lawmakers debated different tax-hike proposals to pay for the bill, including new levies on motor fuels, shipping containers and crude-oil trading. But there appeared to be a lack of consensus, with three leading members of the House Transportation and Infrastructure Committee offering different plans.

The transportation bill would channel $450 billion in funds to states over six years to upgrade roads, bridges and transit systems. The total would include $70 billion each year to spend on highway and mass transit systems.

“It’s extraordinarily unlikely” the bill would pass before October, said Rep. Earl Blumenauer (D., Ore.), a leading proponent of the measure.

Instead, Congress is likely to extend the current annual spending level of about $50 billion, before it expires in September, following the White House’s suggestion. The Obama administration, seeking to pass an ambitious legislative agenda this year including a health-care overhaul, has said it is in no hurry to engage on a debate that potentially involves raising gas taxes, the primary source of funding for transport projects. [read more…]