Bus

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

Allied Specialty Vehicles names new Goshen Coach VP/GM

Joey Belle has more than 30 years of experience in manufacturing and operations, including 22 years at E-One in supervisor and director positions and three years VP, operations, at Capacity Trucks where he played an integral role in the product development and launch of the company’s new Sabre terminal truck platform.

SMART to spend $35 million on 80 new buses

Purchase comes as a result of last year’s election, where 66% of voters approved a tax increase to help the agency upgrade 135 vehicles through a four-year operating issue boost.

New York City Transit introduces bicycle racks to buses

Racks available on S53, S93 Routes for 1-Year pilot testing feasibility and impact to service.

National Express takes over operation of Merced's The BUS

The Bus offers fixed-route and paratransit services to the communities of The Joint Powers Authority of Merced County’s seven member agencies, including the Cities of Atwater, Dos Palos, Gustine, Livingston, Los Banos, and Merced, and the County of Merced.

Maine's Greater Portland Transit adds pass for high school students

The Transit Pass allows free and unlimited use of METRO bus routes during the academic school year, including weekends and break periods.

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

TruckingInfo.com

THE COMMERCIAL TRUCK INDUSTRY’S MOST IN-DEPTH INFORMATION SOURCE

Work Truck Magazine

The resource for managers of class 1-7 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