June 18 (Bloomberg) -- The U.S. should boost spending on highways and transit by more than half to $450 billion the next six years, the chairman of the House transportation committee said, without saying where the money would come from.

Minnesota Democrat James Oberstar told reporters yesterday he’ll propose legislation for the boost, from the current $286.5 billion, to fix roads and ease congestion. Authority to spend from the highway trust fund for transportation maintenance and construction expires Sept. 30. Fuel-saving cars and declines in driving have reduced gasoline-tax revenue for the fund.

Oberstar’s call for a six-year bill is at odds with a request yesterday from Transportation Secretary Ray LaHood. LaHood asked lawmakers for an 18-month reauthorization to replenish the fund, which would delay a decision on raising gas taxes or finding other ways to pay for highways.

“I don’t see where the money’s coming from yet,” said Greg Cohen, chief executive officer of the American Highway Users Alliance, a Washington-based advocacy group. “That’s the sticking point. And I think the administration sees that.”

Cohen said while he supports Oberstar’s six-year bill, an 18-month reauthorization would be preferable to letting the existing law expire and the highway trust fund run dry.

“You can’t ask the public to pay more for the current program, which isn’t working,” said Oberstar, who wants to give states more flexibility on how to spend federal money, restructure the Transportation Department and speed the approval process for transportation construction projects.

Oberstar will propose the legislation next week, said Jim Berard, a spokesman for the committee.

Usual Sources

Representative Peter DeFazio, chairman of the House highways and transit subcommittee, said the administration is reluctant to use the “usual sources” of funding, “which would be a gas tax.” Other options being considered include bonds and tolls, said DeFazio, an Oregon Democrat.

“Congress isn’t close to figuring out how to pay for America’s growing transportation needs, and the disappearing highway trust fund isn’t going to wait for them,” said Phineas Baxandall, an analyst at U.S. PIRG, a consumer watchdog group. “Thankfully, both Congress and the administration seem to agree that new legislation needs to include major changes in policy.”

LaHood said Congress probably won’t pass a new law by late September, in which case the administration would have to ask for the extension when states have already started running out of money.

‘Let’s Face Reality’

“The truth of the matter is that even if the House were to pass a bill by Sept. 30, there’s no guarantee and highly unlikely that the Senate would,” LaHood said in an interview. “So rather than stringing Congress along with three-month or six-month extensions, let’s face reality.”

A delay on a longer-term bill or an extension of the current law expiring in September would be “unacceptable,” Oberstar told reporters yesterday in Washington.

Senator Patty Murray, chairman of the Senate appropriations subcommittee overseeing transportation, told LaHood at a hearing today that she is “concerned about the lack of details” in the short-term extension plan.

“We can’t wait very long for details,” said Murray, a Washington Democrat.

LaHood didn’t say where the money would come from. Last year, Congress spent $8 billion from its general fund to bail out the highway trust fund.

“The fix will be paid for and our staff is working with the Office of Management and Budget,” LaHood said at the appropriations hearing, promising details “very soon.”

Job Creation

Senator Barbara Boxer, Chairman of the Senate Committee on Environment and Public Works, said yesterday that she’s “very pleased” the administration is working to deal with the shortfall in highway funding.

“The White House proposal to replenish the trust fund until 2011 will keep the recovery and job creation moving forward and give us the necessary time to pass a more comprehensive multiyear transportation authorization bill with stable and reliable funding sources,” Boxer said in a statement.

A delay in passing a new law would cost jobs in the construction industry, because states may be reluctant to put big projects up for bid without the promise of funding, DeFazio said.

To contact the reporter on this story: Angela Greiling Keane in Washington at agreilingkea@bloomberg.net

Last Updated: June 18, 2009 14:36 EDT