on the Budget for 
Fiscal Year 2004.--Notwithstanding any other provision of law, all 
adjustments made pursuant to section 110(a)(2) of title 23, United 
States Code, to sums authorized to be appropriated from the Highway 
Trust Fund (other than the Mass Transit Account) to carry out each of 
the Federal-aid highway and highway safety construction programs (other 
than emergency relief) in fiscal year 2004 shall be deemed to be zero.
    (e) Sense of Congress on Adjustment to Align Highway Spending With 
Revenues.--It is the sense of Congress that, in any multiyear 
reauthorization of the Federal-aid highway program, the alignment of 
highway spending with revenues under section 251(b)(1)(B)(ii) of the 
Balanced Budget and Emergency Deficit Control Act of 1985 should be 
restructured to minimize year-to-year fluctuations in highway spending 
levels and to ensure the uniform enforcement of such levels.

SEC. 11. LEVEL OF OBLIGATION LIMITATIONS.

    (a) Highway Category.--Section 8103(a) of the Transportation Equity 
Act for the 21st Century (2 U.S.C. 901 note; 112 Stat. 492) is 
amended--
            (1) by striking ``and'' at the end of paragraph (4);
            (2) by striking the period at the end of paragraph (5) and 
        inserting ``; and''; and
            (3) by adding at the end the following:
            ``(6) for fiscal year 2004, $34,498,000,000.''.
    (b) Mass Transit Category.--Section 8103(b) of such Act (2 U.S.C. 
901 note; 112 Stat. 492) is amended--
            (1) by striking ``and'' at the end of paragraph (4);
            (2) by striking the period at the end of paragraph (5) and 
        inserting ``; and''; and
            (3) by adding at the end the following:
            ``(6) for fiscal year 2004, $7,303,000,000.''.
    (c) Treatment of Funds.--Notwithstanding any other provision of 
law, funds made available under this Act, including the amendments made 
by this Act, shall be deemed to be zero for the purposes of section 110 
of the title 23, United States Code.

SEC. 12. EXTENSION OF AUTHORIZATION FOR USE OF TRUST FUNDS FOR 
              OBLIGATIONS UNDER TEA 21.

    (a) Highway Trust Fund.--
            (1) In general.--Paragraph (1) of section 9503(c) of the 
        Internal Revenue Code of 1986 is amended--
                    (A) in the matter before subparagraph (A), by 
                striking ``October 1, 2003'' and inserting ``July 1, 
                2004'', and
                    (B) in the matter after subparagraph (E), by 
                striking ``TEA 21 Restoration Act'' and inserting 
                ``Surface Transportation Extension Act of 2003''.
            (2) Mass transit account.--Paragraph (3) of section 9503(e) 
        of such Code is amended--
                    (A) in the matter before subparagraph (A), by 
                striking ``October 1, 2003'' and inserting ``July 1, 
                2004'', and
                    (B) in the matter after subparagraph (C), by 
                striking ``TEA 21 Restoration Act'' and inserting 
                ``Surface Transportation Extension Act of 2003''.
            (3) Exception to limitation on transfers.--Subparagraph (B) 
        of section 9503(b)(5) of such Code is amended by striking 
        ``October 1, 2003'' and inserting ``July 1, 2004''.
    (b) Aquatic Resources Trust Fund.--
            (1) Sport fish restoration account.--Subparagraphs (B) and 
        (C) of section 9504(b)(2) of the Internal Revenue Code of 1986 
        are each amended by striking ``TEA 21 Restoration Act'' and 
        inserting ``Surface Transportation Extension Act of 2003''.
            (2) Boat safety account.--Subsection (c) of section 9504 of 
        such Code is amended--
                    (A) by striking ``October 1, 2003'' and inserting 
                ``July 1, 2004'', and
                    (B) by striking ``TEA 21 Restoration Act'' and 
                inserting ``Surface Transportation Extension Act of 
                2003''.
            (3) Exception to limitation on transfers.--Paragraph (2) of 
        section 9504(d) of such Code is amended by striking ``October 
        1, 2003'' and inserting ``July 1, 2004''.
    (c) Effective Date.--The amendments made by this section shall take 
effect on the date of the enactment of this Act.
    (d) Temporary Rule Regarding Adjustments.--During the period 
beginning on the date of the enactment of this Act and ending on March 
31, 2004, for purposes of making any estimate under section 9503(d) of 
the Internal Revenue Code of 1986 of receipts of the Highway Trust 
Fund, the Secretary of the Treasury shall treat--
            (1) each expiring provision of section 9503(b) of such Code 
        which is related to appropriations or transfers to such Fund to 
        have been extended through the end of the 24-month period 
        referred to in section 9503(d)(1)(B) of such Code, and
            (2) with respect to each tax imposed under the sections 
        referred to in section 9503(b)(1) of such Code, the rate of 
        such tax during the 24-month period referred to in section 
        9503(d)(1)(B) of such Code to be the same as the rate of such 
        tax as in effect on the date of the enactment of this Act.
Surface Transportation Extension Act of 2003 - Extends Federal highway, highway safety, motor carrier safety, and transit programs for six months, and authorizes appropriations, through March 31, 2004.

 Directs the Secretary of Transportation to: (1) apportion funds made available for Federal-aid highway programs under the Transportation Equity Act for the 21st Century (TEA-21) to each State according to the ratio of the State's FY 2003 obligation authority to the FY 2003 obligation authority for all States; and (2) ensure that each State is apportioned funds for the Interstate maintenance program, the National Highway System program, the bridge program, the surface transportation program, the congestion mitigation and air quality improvement program, the recreational trails program, the Appalachian development highway system program, and the minimum guarantee.

Sets forth provisions: (1) for reducing future apportionments, and for recovering funds not apportioned, under a law reauthorizing the Federal-aid highway program that is enacted after enactment of this Act; (2) prohibiting States from obligating any Federal-aid highway program funds after March 31, 2004, until the earlier of the date of enactment of a multi-year law reauthorizing such program or June 30 2004; and (3) directing the Secretary of Transportation, on the earlier of such enactment date or June 1, 2004, to distribute to each State any remaining amounts of obligation authority for Federal-aid highways and highway safety construction programs by allocation as provided in an Act making appropriations for the Department of Transportation for FY 2004

Amends the Balanced Budget and Emergency Deficit Control Act of 1985 and TEA-21, respectively, to set related discretionary spending limits and obligation limitations for FY 2004.
To provide an extension of highway, highway safety, motor carrier safety, transit, and other programs funded out of the Highway Trust Fund pending enactment of a law reauthorizing the Transportation Equity Act for the 21st Century.