WASHINGTON—A lack of capital for the Highway Trust Fund (HTF) is looming, with up to $7 billion to keep it solvent through the remainder of 2009, according to various reports.
The HTF is the federal government’s primary source for financing highway, bridge, and transit projects, and it is largely funded by the motor fuel federal tax, which is 18.4 cents per gallon for gasoline and 24.4 cents for diesel and has not been raised since 1993. One main reason for the HTF’s dwindling financial resources is that Americans are driving fewer miles, as evidenced by Americans driving 90 million fewer miles year-over-year in fiscal 2008.
California Senator Barbara Boxer said at a hearing yesterday that the HTF is estimated to have insufficient cash by August 2009 to make good on prior commitments, with $5-to-$7 billion needed.
She added that White House officials have estimated that an additional $8-to$10 billion is needed to pay immediate cash needs of the HTF program is to be maintained at current funding levels through the end of fiscal 2010, which is when Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users (SAFETEA-LU), the current highway, transit, and highway safety authorization, expires.
“The administration is working closely with Congress to solve this difficult problem and ensure that states have the resources they need to maintain our roads and highways,” Department of Transportation Spokeswoman Jill Zuckman told the Associated Press.
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