WASHINGTON -- Republican leaders in the U.S. House have agreed to a higher funding level for a new transportation reauthorization bill, abandoning the $230 billion cap they previously set for any six-year plan.

The reversal was announced by Rep. John Mica, R-Fla., chairman of the House Transportation and Infrastructure Committee, at a meeting last month with transportation stakeholders.

The announcement means threatened funding cuts of more than 30 percent to the current spending on highway, safety, public transit and other transportation programs will not occur.

Mica did not say when he would introduce a long-term reauthorization bill, what level of funding it would contain or where leadership would look for new revenue, his spokesman, Justin Harclerode, said.

"(The House leadership) gave him permission to proceed with a bill at a higher funding level and (said) they would find other funding sources," said Greg Cohen, president of the American Highway Users Alliance.

"But we dont know how yet, and the only thing we know is that it will not be a gas tax," said Cohen, who attended the meeting with Mica.

Some transportation lobbyists said they believe Republicans are looking at the energy industry for new transportation revenue tied to increased oil drilling, perhaps, offshore, or to cuts in oil drilling subsidies.

The U.S. has not had a long-term surface transportation law since the last one expired in 2009. Congress has passed seven short-term extensions, the latest last month, which extends authorization until March 31 (see Oct. 1 Bus & Motorcoach News).

News that the GOP has backed off on deep spending cuts was welcomed by transportation advocates.

Brian Turmail, spokesman for the Associated General Contractors of America, said it was encouraging that House leaders "clearly understand that theyve got to find a way to maintain current levels of infrastructure investment. That for us is a very positive development."

When Republicans took over the House in January they passed a rule that said reauthorization funding could not exceed revenue in the Highway Trust Fund from fuel taxes and other levies on commercial vehicles. That meant transportation spending would be capped at about $34 billion in each of the next six years, Mica said of the bill he is drafting but has not introduced.

Currently, the federal government spends more than $51 billion annually on surface transportation because the trust fund revenue is supplemented by general fund money.

Even at $51 billion, however, transportation experts and business leaders have said current spending is inadequate given the age of the nations infrastructure and the need for repair and new capacity.