Clock ticking on U.S. transportation bill

By Lisa Lambert

WASHINGTON (Reuters) - Legislators and the U.S. transportation industry are up against a September 30 deadline to pass a massive funding law for the country's roads, bridges and public transit.

If they fail, the result would be a sharp cut in money available for transportation infrastructure projects.

"I am hopeful," Pete Nonis, congressional relations manager for the American Automobile Association told Reuters. "It's going to be a tough lift."

Every five years or so, Congress passes a law that dictates how all surface transportation projects in the country will be planned, funded and completed.

The current law, frequently called the highway bill, expires on September 30. It was approved in July 2005, nearly two years after the previous law expired in September 2003. Then-President George W. Bush signed extensions of the expired law 12 times to keep the country's transportation programs on track.

"If we go past the September 30 deadline there will be a serious shortfall in revenues, resulting in a 50 percent cut in what we can send out to the states," said James Berard, a spokesman for the House of Representatives Transportation Committee. "That's the hammer hanging over our heads."

The committee's chairman, Minnesota Democrat James Oberstar, expects the committee to pass the bill in May so the full House can debate and vote on it in June, Berard said.

"We are determined-- at least our goal is -- to get this one done within the current authorization, without having to go to an extension," Berard said.