By KENT HOOVER
Washington Bureau Chief

When Congress returns to Washington in September, it will face urgent deadlines on airport and highway funding bills.

The deal that ended a two-week partial shutdown of the Federal Aviation Administration expires Sept. 16. The federal gasoline tax, which funds highway projects across the nation, expires Sept. 30.

Optimists hope Congress will pass temporary bills extending FAA funding and the gas tax before these deadlines hit, but longer-term measures funding air and surface transportation in the United States are being held up by politics and lack of money.

As these delays continue, America's transportation infrastructure lags that of other nations, and U.S. businesses face higher costs for moving their products and people.

The American Society of Civil Engineers estimates the nation's deteriorating surface transportation infrastructure will cost the U.S. more than 876,000 jobs by 2020.

"Our long-term economic prospects will only get weaker the longer Congress allows our infrastructure to crumble," said New York Mayor Michael Bloomberg.

Bloomberg is a co-chair of Building America's Future Educational Fund, an infrastructure coalition that released a report showing how other nations have leaped ahead of the U.S. in building modern transportation networks.

"As Congress stands idly by, our competitors around the world are racing ahead," Bloomberg said.

FAA shutdown 'a wakeup call'

Thanks to the temporary deal on FAA funding, 4,000 agency employees, 24,000 airport construction workers and thousands of other Americans whose livelihood depends on airport projects have returned to work.

The layoffs of these workers may "serve as a wakeup call" for Congress by demonstrating the consequences of failing to take action on FAA reauthorization, said Brian Deery, senior director of the highway and transportation division for Associated General Contractors of America. He expects Congress to approve another temporary extension of FAA funding by the Sept. 16 deadline.

Reaching agreement on a long-term reauthorization bill for the agency is going to take longer, however. The Senate opposes a provision in the House bill that would overturn a National Mediation Board ruling that makes it easier for unions to organize airlines.

This delay is forcing the FAA to postpone some airport construction contracts, Deery said.

House eyes 35% cut in road funds

Congress also is nowhere close to agreeing on long-term legislation funding highway, bridge and transit projects. That means another extension must be passed by Sept. 30.

The House is considering a bill that would fund surface transportation projects for six years, using only revenue generated by gasoline and diesel taxes. Gasoline tax revenue, however, is a declining source of funding for highway projects as vehicles become more efficient. In fact, the recent agreement by automakers to increase average fuel efficiency to 54.5 miles per gallon by 2025 will reduce federal funding for highway projects by $65 billion, according to the American Road & Transportation Builders Association.

By relying on gas taxes alone - and not additional money appropriated by Congress - the House bill would cut federal highway spending by up to 35 percent, Deery said.

This would be a "triple whammy" for state transportation departments, he said, because they no longer have federal stimulus money to spend on road projects and have seen their own budgets slashed due to state revenue shortfalls.

The Senate is considering more robust funding for highway projects, but only for two years. The Senate Finance Committee is looking at ways to come up with $12 billion in additional revenue to supplement gas tax revenue.

The U.S. Chamber of Commerce supports this approach.

"We must make the effort to try to find revenues ... to prevent drastic cuts," said Bruce Josten, the chamber's top lobbyist. The nation "can't afford to lock in six years of 35 percent cuts in highway and transit investment, as the House plan proposes."

Infrastructure bank no 'silver bullet'

President Barack Obama, meanwhile, wants to create a national infrastructure bank, which could leverage more private-sector dollars for major transportation projects.

Obama has proposed capitalizing the bank with $30 billion over the next six years. The bank would provide grants, loans and loan guarantees for projects of national or regional significance.

An infrastructure bank could help with highway projects in highly congested areas, because tolls could provide a return on private investment, said Peter Ruane, president and CEO of the American Road & Transportation Builders Association. But the bank wouldn't finance most highway projects, he said.

Deery said he supports an infrastructure bank, "but my big fear is that legislators are putting this out there as a silver bullet" that will solve transportation funding problems.

"Make no mistake about it," Ruane said, "if Congress fails to provide revenues to supplement incoming highway trust fund receipts, thousands of jobs will be lost in every state."