Washington, DC – To ensure that highway and transportation projects across the nation do not come to a halt due to a lack of funds, the U.S. House of Representatives today passed an $8 billion relief package.
“The Highway Trust Fund is busted,” said U. S. Rep. John L. Mica (R-FL), Transportation and Infrastructure Committee Republican Leader and cosponsor of the legislation, “and it’s busted for several reasons.
“The mechanism for financing highway and transit projects is obsolete,” Mica said. “In the long term, Congress must address this problem when we reauthorize the current highway bill. In the short term, however, our only option is to pass this legislation and make sure the Highway Trust Fund remains sound and we avoid a transportation crisis.
“With soaring gas prices, people are driving less, our vehicle fleet continues to become more fuel efficient, and we’re using more alternative fuels. Simply less money is coming into the Highway Trust Fund.”
The Highway Trust Fund depends on taxes on gasoline and diesel fuel and is dedicated to maintaining and improving the nation’s highways and transit systems. With the Trust Fund projected to run out of money some time in the next year, the Highway Trust Fund Restoration Act (H.R. 6532) addresses this looming shortfall by transferring $8 billion from the General Fund to the Highway Trust Fund. The bill passed with strong bipartisan support (387 to 37).
“Over the past two years, Highway Trust Fund revenue estimates have continually worsened,” Mica continued, “and we expect the latest estimates to show that the looming shortfall has grown to between $5 billion and $6 billion.
“Failing to pass this bill could trigger a $14 billion cut in highway funding and every state across the country will be forced to start closing down transportation projects. This cut also means that 380,000 jobs could be lost.”
“At a time when our economy continues to struggle, we can not afford to cut federal funding for highway projects,” said U.S. Rep. John J. Duncan, Jr. (R-TN), Highways and Transit Subcommittee Ranking Member. “When we debated the economic stimulus package earlier this year, some said what we were really doing was borrowing money from the Chinese so we could buy Chinese products. This bill ensures that we are investing in our own transportation infrastructure, providing income for Americans, and improving America in the process.
“It is also important to note that we are restoring funds to the Highway Trust Fund that were transferred out of the Fund 10 years ago. This bill returns those gas tax revenues to the Highway Trust Fund to ensure that it does not become insolvent,” Duncan said.
In 1998, in response to concerns that the Highway Trust Fund balance was too high, Congress transferred $8 billion out of the Highway Trust Fund to the General Fund. Now that the Highway Trust Fund faces major shortfalls in 2009 and beyond, H.R. 6532 seeks to restore that $8 billion.
In February 2007 it was estimated that the Highway Trust Fund would have a shortfall of about $1 billion by the end of 2009.
In February 2008 it was estimated that the Highway Trust Fund would have a shortfall of between $3 and $4 billion by the end of 2009.
The most recent estimates for the Highway Trust Fund – which are expected to be released this week – are expected to show a shortfall of between $5 and $6 billion by the end of 2009.
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