Highway Trust Fund in Need of Multi-Billion Dollar Bailout

A new report from the Congressional Budget Office concludes that drastic reductions in transportation spending and/or increases in the federal gas tax will be needed unless another multi-billion dollar bailout is provided for the Highway Trust Fund.

"The Highway Trust Fund won't be able to meet its obligations come 2015, according to a statement by the Congressional Budget Office (CBO) to the House Budget Committee," writes Ryan Holeywell. "Federal lawmakers, the report says, would have to cut transportation spending by 92 percent or raise the gas tax by more than 50 percent in order to bring revenue and spending in line."

"The surface transportation bill, MAP-21, expires at the end of the 2014 fiscal year. The CBO writes that bringing the trust fund into balance after that would require cutting federal transportation spending from $51 billion to $4 billion, raising the gas tax by 10 cents or some combination of the two."

Holeywell notes that, "since 2008, Congress has transferred $41 billion to the trust to keep it afloat, with another $12.6 billion authorized for 2014. Another $14 billion transfer would be needed to prevent the projected shortfall in 2015, the CBO writes."


Full Story: Just How Screwed is the Highway Trust Fund?

Comments

Prepare for the AICP Exam

Join the thousands of students who have utilized the Planetizen AICP* Exam Preparation Class to prepare for the American Planning Association's AICP* exam.
Starting at $199
Planetizen Courses image ad

Planetizen Courses

Advance your career with subscription-based online courses tailored to the urban planning professional.
Starting at $14.95 a month
Wood necklace with city map

City Necklaces

These sweet pendants are engraved on a cedar charm with a mini map of selected cities. The perfect gift for friends and family or yourself!
$28.00
DVD Cover of The Story of Sprawl

The Story of Sprawl

See how America changed shape in this collection of historic films that visually document how sprawl evolved.
$29.99 for 2-DVD SET