Inside208

Federal Transportation Department Tells State Transportation Departments Money is Running Out

Posted on July 2, 2014 by Dene Westbrook

US Transportation Secretary Anthony Foxx has sent a letter to all State Department of Transportation Directors letting them know that because of the funding shortfall in the Highway Trust Fund, reduced payments to states will begin starting August 1st absent Congressional action in order to manage cash flow. The letter is attached below.

There is still no solution agreed upon by Congress. However, the Senate Finance and House Ways and Means Committees leadership are meeting to focus on a short term fix that will fund transportation through the end of the fiscal year. The Congressional Budget Office has been warning officials that the Trust Fund would be insolvent in August for the past year. We will continue to keep you posted as this issue progresses and as further impacts are known.

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Summer Minnick is the Director of Policy Initiatives and Federal Affairs. She can be reached at 517-908-0301 or sminnick@mml.org.

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