Projecting the cash flow in and out of the Highway Trust Fund is a difficult task for the U.S. Department of Transportation. The Department just released new estimates that indicate there may be a sufficient balance to allow highway and transit funding to continue without interruption until June 2016, six months beyond the previous estimate.
In making this new projection, the Department noted that, “many programs funded through the Highway Trust Fund are only authorized through Oct. 29, 2015. Although sufficient balances exist in the Highway Trust Fund to maintain solvency through the third quarter of FY 2016, an October 29th lapse in authorization prevents new obligations in Highway and Transit programs and impacts reimbursements to States."
In July, Congress passed an extension through October 29 and provided an additional $8 billion in revenue to the trust fund. At that time, it was estimated that $8 billion was needed to keep the trust fund solvent through December 2015. DOT’s estimates are based on current spending and revenue trends. With the pace of construction typically slowing down greatly in the winter and increased revenue expected due to additional driving, the revenue projections are better than first anticipated.
Unfortunately, the extra time could give lawmakers leeway to pass another temporary extension instead of finishing a multiyear transportation bill. Please continue to pressure your representatives and tell them to complete work on a long-term highway & transit bill now.
For more information, please contact Brian Deery at deeryb@agc.org or (703) 837-5319.