Four states have cancelled or delayed $780 million in transportation improvement projects and another nine say more than $1.8 billion are at risk because of continued uncertainty in Congress over what do about the Highway Trust Fund (HTF).
The HTF currently funds 52% of all highways and bridge investments made annually by state governments and 35 officials from state DOTS stated publicly that they would be impacted by the precarious status of a highway bill.
The negative impacts are apparent according to state officials. Not passing the bill would cause the loss of thousands of jobs, especially since the beginning of May is when construction work typically increases.
However, that pressure has not brought Congress to a clear-cut decision with the approaching May 31 deadline. Lawmakers from both parties want to keep a steady source of transportation funding, but are struggling with strategizing a plan to pay for state projects.
Previous funding intiatives like the gas tax have been the main source of revenue, but lawmakers must turn to other areas. The federal government spends approximately $50 billion per year on transportation projects, but the gas tax only brings $34 billion annually, which leaves $16 billion gap to fill.
“It’s déjà vu all over again as Yogi Berra would say,” according to ARTBA President & CEO Pete Ruane. “This is one of the most easily avoidable crises because Congress has known the May deadline was coming for about eight months. Yet, here we are again flirting with another economic meltdown in the peak of the construction season,” he added.
