U.S. DOT representatives briefed the House Transportation & Infrastructure Committee on the status of the Highway Trust Fund, which is again running on fumes and needs Congress to authorize a cash infusion before they adjourn for their August recess.
The Highway Trust Fund needs an infusion of $5-8 billion to get through FY 2009. Absent the additional cash the highway program will face a 30-35% cut. The Highway Trust Fund is forecast to need another $14-18 billion to get through FY 2010. Congress and the administration are trying to wrestle with the funding shortfall in the midst of discussion over the multiyear reauthorization proposal that needs to be passed by Sept. 30.
In the wake of the latest funding shortfall, U.S. Secretary of Transportation Ray LaHood called for an 18-month extension of transportation programs.
“If this step is not taken the trust fund will run out of money as soon as late August and states will be in danger of losing the vital transportation funding they need and expect,” LaHood told members of Congress.
“As part of this, I am proposing that we enact critical reforms to help us make better investment decisions with cost-benefit analysis, a focus on more investments in metropolitan areas and promote the concept of livability to more closely link home and work. The administration opposes a gas-tax increase during this challenging, recessionary period, which has hit consumers and businesses hard across our country.”