By Helen Dewar
Washington Post Staff Writer
Friday, March 6 1998; Page A04

The Senate yesterday approved another initiative aimed at curbing drunken driving as its leaders agreed to increase mass transit as well as highway spending over the next six years.

Taking up yet another part of the huge transportation funding bill, the Senate later opened debate on a contentious proposal from Sen. Mitch McConnell (R-Ky.) to repeal a 15-year-old federal program that seeks to award 10 percent of highway contracts to companies owned by minorities and women.

McConnell would replace these "set-asides" with a requirement that states take steps to help small and relatively new businesses compete for contracts through outreach efforts and technical services -- without regard to race or gender.

The existing program amounts to "a race-based quota and it's unfair, unconstitutional and just plain un-American," argued McConnell. He said it puts $17.3 billion worth of "taxpayer-funded highway contracts" off-limits "if you are the wrong race and gender" and adds to construction costs when contracts are not awarded to the lowest bidder.

Critics of McConnell's proposal countered that the rules set goals, not quotas, and contended that the program has been retooled to pass constitutional muster. It "works and works well" to "help hundreds of thousands of people" who would otherwise be cut out of highway work, said Sen. John W. Warner (R-Va.), chief author of the highway bill.

Sen. John H. Chafee (R-R.I.), floor manager for the legislation, also opposed the proposal and warned colleagues that the administration has hinted that President Clinton may veto the bill -- which lawmakers are anxious to pass in time for the construction season -- if McConnell's proposal is included.

Minority Leader Thomas A. Daschle (D-S.D.) predicted McConnell's proposal -- the first of several Congress may face this year to scrap what critics describe as race and gender "preferences" in government programs -- will be defeated by a comfortable margin.

A vote on McConnell's proposal was scheduled for today.

In action earlier in the day, the Senate affirmed by voice vote a deal struck earlier by its leaders to increase highway spending to $173 billion through 2003, a $51 billion increase over previous spending and $26 billion more than initially recommended by committee.

Under pressure from urban senators, Senate leaders also agreed to increase the transit portion of the bill by $5 billion to $41.3 billion. "This agreement brings fairness and equity to transportation funding," said Sen. Alfonse M. D'Amato (R-N.Y.), who led the fight for the transit increase.

On other issues, the Senate voted 52 to 47 for a proposal by Sen. Byron L. Dorgan (D-N.D.) to force states to ban open containers of alcoholic beverages in vehicles while they are in operation. States that refuse to do so, now numbering 22, would lose 5 percent of their highway aid in fiscal 2002 and 10 percent thereafter.

But the Senate later rejected, 56 to 43, another proposal by Sen. Jeff Bingaman (D-N.M.) that would have imposed similar penalties on states that do not ban drive-through sales of alcohol, now permitted in 26 states.