Road Projects at a Standstill as Highway Fund Goes Broke

More than 100,000 projects across the country could be affected by lack of federal funding.

July 08, 2014

WASHINGTON – Federal funding for repairing bridges and highways will be reduced or delayed as soon as next month, unless Congress reworks financing for the Highway Trust Fund.

Transportation Secretary Anthony Foxx sent letters sent to all 50 states explaining that they would not be immediately reimbursed for transportation projects, thus causing many states to put projects on hold.

The administration's warnings come as the White House is trying to turn up pressure on Congress to boost funding for the federal fund, whose balance is expected to dwindle to zero next month from $8 billion at the end of May.

Many Democrats and Republicans say they want to continue funding highway projects, but they differ widely on how to finance new spending.

Secretary Foxx estimated that "on average, states will see a 28% drop in federal transportation dollars," potentially affecting more than 100,000 road projects around the country.

The government spends more money on transportation projects than it collects through the 18.4-cent-per-gallon gas tax, which is the primary reason for the big deficit. Under the administration's new allotment plan, each state will receive a certain share of the money that comes in through the federal gasoline tax during the two-week allotment periods.

With just a few weeks left until the delays and cuts are implemented, Congress is juggling a number of different proposals in order to reach an agreement on continued funding.

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