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House Passes Highway Trust Fund Fix

September 11, 2008
The House of Representatives today approved H.R. 6532 transferring $8 billion from the general fund of the Treasury to the Highway Trust Fund (HTF). The vote was 376 in favor and 29 Republicans voting against. House action was necessary because the original version of H.R. 6532 transferred the funds on October 1. The Senate yesterday amended the bill to allow the transfer to happen when the president signs the bill, which is expected by the end of the week. This immediate transfer was necessary because the HTF does not have a sufficient balance to fully reimburse states for payments they have made on ongoing federal-aid highway contracts. Once the bill is signed FHWA will resume its long standing procedure of reimbursing states on a daily basis for the full amount submitted. The transfer of these funds reimburses the HTF for $8 billion that was taken from the HTF in 1998, as part of the TEA-21 negotiations. At that time, the HTF had a large balance and the $8 billion was a trade off for fire wall protection of the HTF and funding guarantees. With this action completed, there should be a sufficient balance to fully fund SAFETEA-LU through its full authorization period which expires on September 30, 2009. AGC worked very closely with our chapters and our construction and transportation industry allies to generate the support necessary to have this legislation enacted. Thank you to all who took the time to communicate with your Congressional delegations.
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