Highway Trust Fund Could Be Out of Money by August

The Federal Highway Administration (FHWA) briefed members of the relevant House and Senate Committees about the revenue shortfall in the Highway Trust Fund that could cause a slowdown in payments to states as early as mid-July. The Obama Administration has indicated that an infusion of $5 billion to $7 billion will be necessary soon in order to fully fund existing commitments through September 30, 2009, or the end of fiscal year 2009. At a hearing last week on the nomination of Victor Mendez for Highway Administrator, Senate Environment and Public Works Committee Chairman Barbara Boxer (D-Calif.) reported that in addition to the funds needed for FY 2009 an additional $8 billion to $10 billion will be necessary to get through FY 2010. The President's budget indicated that as much as $36 billion could be needed in FY 2010 to prevent a shortfall in funding. At a hearing last week before the Senate Appropriations Transportation Subcommittee, Transportation Secretary Ray LaHood indicated that the Administration will be working with Congress to ensure that this cash flow problem does not result in a slowdown in payments to states to reimburse ongoing highway construction. For more information, contact Brian Deery at (703) 837-5319 or deeryb@agc.org.