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

Bridj to launch D.C. service

While Founder Matt George is interested in connecting Capitol Hill, K Street and Dupont Circle, it’s not yet clear if those will be the neighborhoods Bridj starts with. The start-up is encouraging interested customers to request specific routes on its website

New Flyer wins N.Y. CNG bus contract

The contract for 110 XN40 buses contains a firm order for 52 buses with options for an additional 58 buses and is valued at approximately $53 million dollars.

CCW to provide Iowa with rebuilt artics

Des Moines Area Regional Transit's 60-foot low floor articulated buses will replace high-floor buses and include newly installed ramps, remanufactured power trains, transmissions, engines and brakes. It will also be equipped with two ADA compliant wheelchair lifts.

Texas' Capital Metro adds real-time information to bus fleet

The agency rolled out real-time data on MetroRapid and MetroRail last year, receiving strong positive feedback from customers.

AC Transit piloting Alexander Dennis double-deck bus

The 80-seat coach, offering its riders comfy excursions with spectacular views — particularly to and from San Francisco — made its first cruise on the Line U, from Fremont to Stanford University, before being deployed on other daily routes.

See More News

Post a Comment

Post Comment

Comments (0)

Please sign in or register to .    Close