On Wednesday, U.S. Department of Transportation (DOT) Secretary Anthony Foxx sent letters to heads of state transportation departments warning them of the impending consequences if the Highway Trust Fund (HTF) becomes insolvent.  Secretary Foxx’s letter warned that states should expect delays in receiving disbursements from the HTF this summer if Congress fails to address the funding shortfalls.  As we have previously reported, if the HTF falls below the $4 billion funding level, which is projected to happen as soon as July, the DOT will immediately rein in reimbursements for all federally-supported transportation projects. 

During a hearing of the Senate Finance Committee this week, Joseph Kile, Assistant Director with the Congressional Budget Office testified that highway spending would need to be decreased more than 30 percent, and transit spending would need to decrease more than 65 percent over the next ten years to keep pace with available revenues.  Senate Finance Committee Chair Ron Wyden (D-Oregon) stopped short of providing any indication of how his Committee would pay to shore up the dwindling HTF, but mentioned a $10 billion price tag to keep the fund afloat through December, and an additional $18 billion for the projected shortfall through fiscal year 2015.

For additional information, please contact RCRC Legislative Analyst Randall Echevarria at (916) 447-4806 orrechevarria@rcrcnet.org.