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The Department of Transportation said $48.8 billion is now available to state transportation departments for federal projects through the Hiring Incentives to Restore Employment Act.

WASHINGTON — Rep. James Oberstar (D-Minn.), chairman of the House Transportation and Infrastructure Committee, proposed borrowing $130 billion from the Treasury Department to finance a new highway bill, which could be repaid through an increase in the federal fuel tax increase.

President Obama on March 18 signed into law an extension of the highway bill through the end of the year as part of a $17.6 billion package of tax incentives and bonding proposals aimed at spurring job creation.

After Sen. Jim Bunning (R-Ky.) agreed last week to stop blocking legislation that extends the federal highway program, the Senate ap-proved the 30-day extension, allowing state transportation agencies to resume construction projects they had shut down.

Transportation leaders said last week they hoped to complete a long-term surface transportation reauthorization before the end of the year, although paying for the legislation’s increased infrastructure spending remains a major obstacle.