Secretaries Mineta and Snow Recommend Presidential Veto if Highway Taxes Increase

Transportation secretary Norman Mineta and Treasury secretary John Snow sent a joint letter to Congress warning that any transportation bill that includes an increase in the federal gas tax will be recommended for a Presidential veto.

The Administration proposed a $356 billion surface transportation budget. The Senate passed a bill that would authorize $318 billion in spending over the next six years. The House is scheduled to take up its version of the six-year authorization on February 25. They voted to extend current transportation programs for four months past their February 29 expiration.

The inclusion of a federal gas tax hike is a major sticking point in the House, Senate, and White House. The White House (with the support of Secretaries Mineta and Snow) has said that it will veto any legislation that includes a hike in taxes, uses bonds to disguise tax hikes, or dips into the general treasury. Many in Congress see no other way to bring in additional highway revenue.

Since the House approved current programs through June, a major showdown on the surface transportation in expected for early summer.

Click here to read Secretary Mineta's veto warning.

If you have questions on this topic, please contact AEMCA Director of Government Affairs Melissa Moskal.