MEMA has learned that House and Senate lawmakers reached a deal June 23 to authorize $286.5 billion for highway, public transportation and traffic safety programs through fiscal 2009.

The deal struck also would have the House and Senate split earmarked projects that do not count toward a state's minimum guaranteed rate of return in highway aid, while giving the Senate as much as 40 percent of those projects that do count toward that rate of return.

The agreement represents a significant reduction in funding compared to the $295 billion previously approved by the Senate, but it still exceeds maximum amount the White House said they would support.

Throughout the highway debate, President Bush has said he would veto any package which exceeded $283.9 billion.

Additional work still needs to be done in order to reconcile the House and Senate bills, however, this agreement serves as a positive sign in the negotiation process. Sources are reporting that the highway bill could be wrapped up as early as Tuesday, June 28.

The seventh temporary funding extension (PL 109-14) will expire on Thursday, June 30. If conferees are unable to reach a consensus on the details of the bill before then, an eighth extension will be approved, buying the conferees additional time to reach a compromise.