DC Update: Laptop Ban; Trump Goes Truckin’

By James Voyles, Logistics Supply Chain Coalition, Executive Director

In Washington, Supreme Court nominations and health care did not distract Congress from transportation. On Tuesday, Homeland Security required all personal electronic devices larger than a cell phone to be in checked luggage from particular Middle Eastern countries. Although the policy does not directly affect cargo transportation, policies that put severe restrictions on electronics on planes is concerning precedent to set for the industry. The LSCC will be monitoring this policy and will report any updates.

Proposals to privatize air traffic controller (ATC) in the FAA reauthorization bill may stall the bill, just as it did last year. Representative Bill Shuster (R-PA), Chair of the House Transportation and Infrastructure Committee, doubled down on his efforts to include privatization of ATC in the FAA reauthorization. He suggested that any efforts to increase the Passenger Facility Charge (PFC) should wait until after ATC is fixed. Democrats claim this will result in only short-term extensions. Senators from both parties have expressed similar reservations.

Representative Pete DeFazio is proposing gas taxes be tied to the rate of inflation.

On Wednesday, Representative Peter DeFazio (D-OR) introduced a bill to index the gas tax to inflation. The annual increases are anticipated to be about one cent, but would be capped at one-and-a-half cents per gallon. DeFazio anticipates that the tax increase coupled with $17 billion in 30-year bonds would result in $500 billion available for infrastructure spending. President Trump has not introduced his infrastructure package yet, but Chairman Shuster anticipates it will be in the fall, assuming that health care has been addressed.

On Thursday, the Senate aviation subcommittee held its first of several hearings in preparation of the FAA Reauthorization. Debate centered on whether the PFC cap should be increased or eliminated. Some members, such as Senator Bill Nelson (D-FL), suggested the PFC should be raised since it has not been increased for 16 years. Others argued for more spending from the Airport Improvement Program, without increasing the taxes that fund it, since there is currently a surplus for it. Others encouraged increased bond issuances to fund airport infrastructure.

Thursday afternoon, the American Trucking Association met with President Trump to discuss infrastructure, regulation reform, and taxes. Also, it was announced House Transportation and Infrastructure Committee member Duncan Hunter (R-CA) is under a Department of Justice investigation for campaign finance violations.

Thursday marked the 36 day countdown until the DOT will run out of appropriations. FAA reauthorization expires in 191 days, and the highway and transit policy is up for renewal in 1,288 days.

The discussion over FAA Reauthorization and infrastructure spending will continue. Look out for next week’s D.C. Update for the latest news.