After nearly two years of disagreement on funding levels, Congress and President Bush have come to terms on a plan that will guarantee $286.5 billion in federal money for highway and transportation programs to the 50 states over the next six years.

President Bush signed the Safe, Accountable, Flexible, Efficient Transportation Equity Act (SAFE TEA) on Aug. 10. He said "our economy depends on us having the most efficient, reliable transportation system in the world," adding that the new legislation "will finance needed road improvements and will ease traffic congestion in communities all across this country."

For Michigan, the plan will bring an additional $239 million more per year in transportation spending, said Gov. Jennifer Granholm.

"The good news," she said, "is that increased highway and transit funding translates into more jobs for Michigan. It also means that Michigan will get back more of the federal gasoline tax revenue we send to Washington D.C., so that we can aggressively invest in preserving and improving Michigan's transportation system."

The prior federal funding mechanism, TEA 21, expired on Sept. 30, 2003 and was extended (but not increased) 12 times by Congress.

"Today's bill signing," said Associated General Contractors CEO Stephen E. Sandherr, "means that highway contractors around the country will be able to take their businesses off hold, and move forward with this construction season and those to come."

Granholm said the new federal funds "allow us to invest more dollars in congestion relief, border crossings, and to expand our focus on safety and protecting the environment." She said as part of the package Michigan will receive $108 million per year in public transit funds from 2006 through 2009 - a 39 percent increase.

Under the new funding plan, Michigan also becomes less of a "donor" state, wherein our state sends more in tax dollars to Washington D.C. than we get back. Michigan had been getting back 90.5 percent, an amount that will be increased to 92 percent for 2008.