Congress passes student loans, highway jobs bill

By ALAN FRAM, Associated Press

WASHINGTON (AP) — Finding rare political accommodation on the cusp of a holiday recess, Congress passed legislation Friday designed to salvage 2.8 million jobs and shield students from a sharp increase in loan interest rates.

The legislation, which also revamps highway and transit programs and shores up the federal flood insurance program, now goes to the White House for President Barack Obama's signatures.

Lawmakers trying to leave town for a weeklong Fourth of July recess had been facing twin deadlines: Federal highway and transit aid programs and the government's authority to levy federal fuel taxes were expiring Saturday. And interest rates on new student loans were set to double on Sunday.

The burst of legislating came just four months before the November elections, giving lawmakers achievements to show off to voters who have increasingly held Congress in low esteem while the economy continues to flounder.

"We have a bill that will boost this economy. We have a bill that is supported by conservatives and liberals, progressives and moderates. I think it's a great day," said Sen. Barbara Boxer, D-Calif., who led Senate negotiations on the transportation portion of the package.

Boxer estimated the bill would save about 1.8 million jobs by keeping aid for highway and transit construction flowing to states and create another 1 million jobs by using federal loan guarantees to leverage private sector investment in infrastructure projects.

Rep. John Mica, R-Fla., chairman of the Transportation and Infrastructure Committee, said: "Probably millions would have been put out of work if we hadn't acted."

Not all lawmakers were happy.

"At least it's not as bad as our Republican colleagues wanted," complained Rep. Earl Blumenauer, D-Ore., who has championed bike and pedestrian programs that the measure would squeeze. "But make no mistake, it is not a bill to be proud of."

In the bargaining that led up to an agreement on the package earlier this week, House Republicans gave up their demands that the bill require approval of the contentious Keystone XL oil pipeline and block federal regulation of toxic waste generated by coal-fired power plants. Democrats gave ground on environmental protections and biking, pedestrian and safety programs.

The bill consolidates various transportation programs and reduces the number of programs by two-thirds. States would have more flexibility on how they spend transportation aid. It also revamps rules on environmental studies of the potential impact of highway projects, with an aim toward cutting in half the time it takes to complete construction projects. And the measure contains an array of safety initiatives, including requirements that would make it more likely passengers would survive a tour bus crash.

Read the entire story at [The Associated Press]