NTU urges all Senators to vote "NO" on the motion to concur with a further amendment to the House amendment on H.R. 1586, the FAA Air Transportation Modernization and Safety Improvement Act. The Reid/Murray Amendment would authorize $10 billion for an "education jobs fund" and $16.1 billion to extend Federal Medical Assistance Percentages funding.
The $10 billion slush fund to bail out states with budget shortfalls is being offered on top of the $100 billion in “stimulus” resources provided to education in 2009 – 33 percent of which has yet to be spent. Moreover, this amendment prohibits a Governor from “opting out” of the bailout fund. The Secretary of Education would instead be required to distribute the funds to another entity within the state.
Most troubling is the amendment’s “pay-for”: a $9.6 billion permanent tax increase. Under no circumstance does this tax hike belong in discussions related to aviation reform, especially given that education and Medicaid are unrelated to the underlying bill. In any case, according to the Congressional Budget Office, the Amendment would still add nearly $5 billion in deficits to the nation’s balance sheet.
For these reasons, all Senators should vote “NO” on the Reid/Murray Amendment. Roll call votes on this amendment will be significantly weighted in our annual Rating of Congress.
If you have any questions, please contact:
NTU Federal Government Affairs Manager Jordan Forbes at (703) 683-5700