[U.S. transportation secretary] Anthony Foxx kicked off an eight-state bus trip in Ohio to whip up public support for congressional approval of legislation to keep federal transportation aid flowing to states for another four years, and possibly longer. But Congress will have to act fast. The trust fund — the source of much of the aid — is forecast to essentially run dry sometime before the end of the federal fiscal year Sept. 30, and possibly as early as late August.
If that happens, the government will have to slow down or even halt payments to states, which rely on federal aid for most major highway projects. Uncertainty over whether there will be enough funds in the coming months is already causing officials in states like Arkansas, California and Colorado to consider delaying planned projects.
Foxx’s warnings this week echo ones by President Barack Obama, who cautioned in February that unless Congress finished a bill by summer’s end then “we could see construction projects stop in their tracks.” But there is little interest among politicians in an election year to consider raising gasoline taxes.
Many transportation insiders, including Foxx’s predecessor, Ray LaHood, predict Congress will wind up doing what it has done repeatedly over the past five years — dip into the general treasury for enough money for to keep programs going a few weeks or a few months, at which point the exercise will have to be repeated all over again.
via Congress gives states the transportation blues | savannahnow.com.
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