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Federal Highway Trust running on fumes
09/08/2008
Fifty state departments of transportation were informed today that the federal highway trust fund is running on fumes.
The balance in the Highway Account of the federal Highway Trust Fund (HTF) dropped precipitously over the past two months, from $4.2 billion at the end of July to less than $1.4 billion at the beginning of September.
Until the situation is fixed, the FHWA must slow the rate of reimbursements they make to the states. When Texas or any other state sends in a bill, the FHWA will reimburse the state its pro rata share up to the amount they have. (For example, if we send in a reimbursement request for $80, they may only have $60 to pay us back that week. The following week they will pay the remaining $20, assuming funding is available. Keep in mind that was simply an example.)
The FHWA is presently assessing how much they will have to slow down the reimbursement rate and when that information is available, I will let you know. Right now there is no quick or simple way for TxDOT or any other state DOT to quantify the exact impact each of us will feel. We are working on it, though.
The USDOT has provided a list of "fixes" that are at the end of the HTF Fact Sheet. The immediate suggestion is that United States Congress boost the federal Highway Trust Fund with an $8 billion infusion of general funds (i.e. not fuel taxes). The primary focus is HR 6532 which has passed the House and awaits Senate action.
Until we receive further clarification from the Federal Highway Administration about the depth and duration of this unprecedented slowdown in reimbursements, the effect on our work remains uncertain. As of today we have no plans to slow any current work activity, but the days and weeks ahead may require a different course of action. We will continue to monitor this situation.
Please see the letter from the USDOT.
