FHWA does not have the funds

Aug. 29, 2008

At a meeting of the AASHTO-AGC-ARTBA Joint Committee earlier this week, Federal Highway Administration (FHWA) participants indicated that an announcement on the status of Highway Trust Fund (HTF) reimbursements to states will be made as early as this week. Indications are that the increased drop in revenue into the HTF that has resulted from the decline in travel over the past year due to high gas prices are creating an immediate cash-flow crunch.

At a meeting of the AASHTO-AGC-ARTBA Joint Committee earlier this week, Federal Highway Administration (FHWA) participants indicated that an announcement on the status of Highway Trust Fund (HTF) reimbursements to states will be made as early as this week. Indications are that the increased drop in revenue into the HTF that has resulted from the decline in travel over the past year due to high gas prices are creating an immediate cash-flow crunch.

FHWA may be forced to slow down its payments to states as early as September or October. State DOT participants indicated that a slow down in federal payments to states would most likely result in a delay or cut off of payments to contractors for ongoing contracts.

The AGC contractors who participated pointed out that this action is very likely to result in worker layoffs and could lead to termination of contracts. FHWA responded that it is examining the current situation and would alert states to the actions it will be forced to take.

The Joint Committee discussed the need to urge Congress to move expeditiously to provide the HTF with additional revenue to prevent the funding shortfall.

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