Government Issues

Foxx warns of damaging FHWA cutbacks after MAP-21 expires in August

Posted on July 14, 2015

U.S. Transportation Secretary Anthony Foxx sent a letter notifying state department of transportation officials that the Federal Highway Administration (FHWA) will be unable to incur new obligations or make reimbursements to states beginning August 1, 2015, a day after the current MAP-21 surface transportation authority is set to expire.

The U.S. Department of Transportation (U.S. DOT) has published charts showing projected insolvency in the Highway Trust Fund Highway Account by early September and in the Mass Transit Account by early October. However in August, the Highway Account is anticipated to dip below the $4 billion threshold, triggering cash management procedures and leading to delayed reimbursements to the states.

In the letter, Secretary Foxx explains some of the grievous actions that U.S. DOT will be forced to make due to a funding shortfall.

“FHWA will not have the authority to provide project sponsors with any additional contract authority for new or ongoing projects,” Foxx wrote. “Similarly, FHWA will be required to furlough employees, which means your agency will cease having access to personnel who assist with all highway projects, not just with processing payments, but also project approvals, environmental actions and permitting, authorizations for new projects and modifications to existing projects, technical assistance and other vital activities we all rely on FHWA to conduct.”

Earlier this year, the Obama Administration transmitted to Congress an expanded and improved surface transportation program, in the GROW AMERICA Act legislative proposal. That proposal calls for funding growth of almost 50 percent over six years. The funding levels called for in GROW AMERICA are reflected in the Administration’s fiscal year 2016 budget and are fully paid for through existing revenues and by reforming the business tax system while eliminating loopholes that reward companies for moving profits overseas.

GROW AMERICA also includes measures to speed up projects without compromising the environment or structural integrity. It proposes programs to accelerate freight movement and to incentivize states to adopt technologies and processes to match DOT efforts to get projects done faster. GROW AMERICA also proposes ways to bring more private dollars into the work of building our nation's infrastructure through public-private partnerships.

“Congress’s failure to pass a long-term bill is of great concern to all of us who are engaged in the work of building and maintaining our Nation’s transportation infrastructure,” said Foxx. “Careening from self-inflicted crisis to self-inflicted crisis undermines our system. We need Congress to break the cycle of short term extensions; we need a long-term bill with significant growth.”

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

More News

Sumwalt III sworn in as NTSB chairman

His tenure with the NTSB began in August 2006 with his appointment as the 37th member of the NTSB, whereupon President George W. Bush designated him as vice chairman for a two-year term.

FTA files NPRM to streamline private sector investment in transit projects

Recipients of Federal funding for public transportation projects would be allowed to identify specific FTA regulations, practices, procedures, or guidance documents that may be an impediment to the use of a P3 or private investment in that project.

House approves creation of WMATA safety commission

The passage of the resolution giving Congress's consent is now the final piece in creating the commission. However, the federal transit agency will continue to oversee safety until it determines that the new entity is capable of meeting its responsibilities.

Former Conrail chief nominated to lead FRA

Ronald L. Batory joined the company in 1998 as VP, operations, and was appointed president/CEO in 2004.

Buy America rules raising costs for U.S. transit systems, study says

President Trump has repeatedly promised that his policies would require companies to buy and hire American.

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