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

L.A. Metro opens new 'green' bus facility

Division 13 will serve as a bus maintenance, operations and service facility with a multi-level parking garage that accommodates 200 CNG buses, fueling equipment, transportation offices and support areas.

Starcraft Bus named Ford's top volume pool account for 10th year

The company has purchased and sold more Ford E-Series chassis than any other bus manufacturer in North America since 2006.

Cummins announces new 'SmartEfficiency' initiative

The product improvement plan focuses on improved fuel efficiency, lower total cost of ownership and improved uptime.

Bluetooth, Wi-Fi sensing from mobile devices may help improve bus service

University of Washington researchers have developed an inexpensive system that uses Wi-Fi and Bluetooth signals from passengers’ mobile phones and devices to collect better data about where bus riders get on and off, how many people use a given stop and even how long they wait to transfer to another bus.

'Off route' Calif. bus driver runs double-decker into bridge

According to the agency transit manager, the driver “got off route” and drove under the bridge, though why is still under investigation. The bus was out-of-service and had no passengers at the time.

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 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