Statement of Administration Policy: S. 2405 - Federal Highway Act of 1986

(Senate)
(Symms (R) Idaho and 5 others)

Provided that Section 105, which allows any State or local government to deny Federal highway funds to companies doing business in South Africa, is deleted, the Administration supports Senate passage of S. 2405. In particular, the Administration supports the provisions in the bill which would (1) combine the funding for the Interstate and primary systems; and (2) provide States increased flexibility to control unwanted billboards and eliminate costly Federal compensation requirements. In addition to deleting Section 105, however, the Administration urges the adoption of amendments to: (1) establish authorization levels totaling $51.1 billion for fiscal years 1987 - 1990, as proposed in the 1987 Budget, instead of the $52.3 billion authorization total currently in the bill; (2) revise the 55-mile per hour speed limit to provide States enhanced authority to regulate speed limits within their jurisdictions; (3) incorporate the Administration's proposed "Highway Safety, Act of 1986", "Mass Transportation Capital Assistance and Reform Act of 1986", ""Highway Transit Block Grant Act of 1986", and "Surface Transportation Revenue Act of 1986" (respectively, Titles II, IV, and V of S. 2189); (4) allocate transit funds to each State taking into account their contributions to the Highway Trust Fund; (5) permit States to use Federal aid in conjunction with toll revenues for the construction of new highways; (6) raise the threshold for Davis-Bacon Act coverage of highway projects to $100,000; and (7) repeal the "Buy America" requirements in subsections 165 (a), (b), (c), and (d) of the Surface Transportation Assistance Act of 1982. The Administration would oppose any amendment to permit negotiated contracts without competitive bidding.

Should S. 2405 be amended to remove the Highway Trust Fund or other trust funds from the budget or to increase spending for either "demonstration" projects or regular programs, the President's senior advisors will recommend a veto of the bill.