With the Highway Trust Fund on the verge of depletion, the Transportation Department sent Congress a more detailed plan Wednesday to keep surface transportation programs funded through March 2011.

In a two-page document, the department proposed borrowing $20 billion from the Treasury’s general fund, to be repaid over 10 years. But it did not recommend specific spending cuts or revenue raisers to offset the funding over the coming decade.

“A revenue measure that repays the general fund contemporaneously is not feasible given the economic situation and pressing needs of the transportation system,” the department said.

The document also outlined transportation policy changes that Secretary Ray LaHood hinted at June 17 when he announced the White House’s support for a short-term extension of current surface transportation law (PL 109-59). That authorization expires Sept. 30.

LaHood previously told Congress that the federal Highway Trust Fund would run short by $5 billion to $7 billion in August. He also said an additional $8 billion to $10 billion would be needed to finance projects already authorized through the end of fiscal 2010.

“Legislation to address the HTF shortfall should pass before August recess to avoid disruptions to state cash management and further strain on state budgets,” the latest document said.

While the 18-month extension proposal does not provide specific ideas to pay back the general fund, it does say the administration would support a range of options, including “international tax enforcement proposals,” which were in the president’s fiscal 2010 budget request.

In its budget, the administration proposed several steps that would dramatically change the way the United States taxes multinational corporations based here. The most controversial proposal, which would raise an estimated $51.5 billion over 10 years, would limit companies’ ability to defer U.S. taxes on money they earn overseas. Other proposals would place new limitations on foreign tax credits and give companies less flexilibity in using offshore subsidiaries.

Policy Changes