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Tuesday, July 15, 2014

House passes bill to replenish Highway Trust Fund

The House passed a bill Tuesday to replenish the Highway Trust Fund through May 2015. House Republicans suggested last month ending Saturday mail (except for packages) and using the savings to replenish the fund, but The Associated Press reports that the bill "cobbles together $10.8 billion in pension tax changes, customs fees and money from a fund to repair leaking underground fuel storage tanks. A similar bill is pending in the Senate."

"Unless Congress acts, the Transportation Department says that by the first week in August the fund will no longer have enough money to cover promised aid to states, and the government will begin to stretch out payments," AP writes. "States have been told to expect a 28 percent reduction in aid on average. The fund is expected to reach a zero balance by the end of August. Some states already have begun to delay or cancel construction projects due to the uncertainty of federal money." (Read more)

Some groups, such as "The AFL-CIO and other infrastructure advocates have been pushing for an increase in the federal gas tax that is used to help pay for transportation projects," Keith Laing reports for The Hill. "The tax, which is currently priced at 18.4 cents-per-gallon, has been the traditional source of revenue for transportation spending since the 1950’s. The tax has been stagnant since 1993, however, and it has struggled to keep pace with infrastructure expenses as cars have become more fuel efficient in recent years."

"Budget analysts have projected that the Highway Trust Fund will run short by about $16 billion per year if Congress does not approve a long-term bill to replenish it," Laing writes. "The gas tax brings in about $34 billion per year, but the federal government currently spends approximately $50 billion annually on road and transit projects. Transportation advocates have said that the current funding level is the minimum that can be spent to maintain the present state of the nation’s infrastructure network." (Read more)

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