Foxx outlines plans to manage impending HTF insolvency

Posted on July 1, 2014

U.S. Secretary of Transportation Anthony Foxx today sent letters to state transportation departments and transit agencies outlining steps the Department of Transportation (DOT) will soon be forced to take to manage the impending insolvency of the Highway Trust Fund. In both letters, Secretary Foxx outlined the Department’s proposed plan while emphasizing the need for Congress to act in order to avoid such a shortfall.

RELATED: U.S. Senators push to raise gas tax

“There is still time for Congress to act on a long term solution,” said Secretary Foxx. “Our transportation infrastructure is too essential to suffer continued neglect, and I hope Congress will avert this crisis before it is too late.”

The Department’s most recent projections show the shortfall will reach a critical point in the Trust Fund’s Highway Account in just a few weeks, requiring the Department to institute cash management procedures for highways at that time, with a similar cash management plan to follow for the Trust Fund’s Mass Transit Account when it is expected to reach a similar point this Fall.

Each year, the U.S. Department of Transportation apportions funding to the states for their highway programs based on formula established in Federal law. Starting in August, DOT will use those same percentages to determine how much each state will receive of whatever amount is left in the Trust Fund. Reimbursements to States will be limited to the available cash in the Trust Fund, and new revenues will be added every two weeks as money from the gas tax flows into the Fund. A similar process will be implemented for Federal Transit Administration funds in the fall, when the transit account of the Highway Trust Fund is expected to become insolvent.

This approach by the U.S. Department of Transportation is intended to allow state departments of transportation to direct available cash to what they determine to be the highest transportation priorities and choose which projects receive reimbursement.

The Highway Trust Fund was established in 1956 to finance the United States Interstate Highway System, other roads and bridges. It was expanded in 1982 to include mass transit projects.

View comments or post a comment on this story. (0 Comments)

More News

Fla.'s JTA sets launch date for new BRT service

The 9.4 mile Green Line on the North Corridor will feature direct, high-frequency service; 18 branded stations; complimentary Wi-Fi, a Park-n-Ride lot, and real-time bus arrival information.

Canadian bus service to block Internet streaming

Some customers have reported slow internet service, while others couldn't connect at al, due to Internet streaming issues.

Nova Bus names new east coast regional sales manager

Prior to joinging Nova, John Manzi served as eastern regional transit sales manager for a major transmission manufacturer.

Shuttle, circulator routes drawing thousands of riders in Miami

These services carried more than eight million passengers last year in 27 municipalities and are praised by riders and public officials alike as successful transit programs.

Calif.'s VVTA unveils Google trip planner update, web app

VVTA staff coordinated with the county and cities to maintain route and stop accuracy throughout the release cycle. Meeting the needs of the many departments at each agency added to the complexity of the project.

See More News

Post a Comment

Post Comment

Comments (0)

More From The World's Largest Fleet Publisher

Automotive Fleet

The Car and truck fleet and leasing management magazine

Business Fleet

managing 10-50 company vehicles

Fleet Financials

Executive vehicle management

Government Fleet

managing public sector vehicles & equipment



Work Truck Magazine

The number 1 resource for vocational truck fleets

Schoolbus Fleet

Serving school transportation professionals in the U.S. and Canada

LCT Magazine

Global Resource For Limousine and Bus Transportation

Please sign in or register to .    Close