Ryan Holeywell writes a follow-up to the meeting of a House Transportation subcommittee on the impending insolvency of the Highway Trust Fund - looking at it from the states' perspective rather than from Capitol Hill's. They have a lot at stake.
While some of the newer House members did not appear stirred by the dire consequences of the impending insolvency of the Highway Trust Fund as explained by Department of Transportation (DOT) under secretary Polly Trottenberg and Congressional Budget Office unit chief Kim Cawley on July 23, "it’s state transportation officials who should be worried", writes Holeywell.
If the trust fund experiences a cash shortfall, the DOT will be forced to start taking steps to manage whatever cash it has left. Trottenberg gave Congress a detailed look at what exactly that might mean for states -- and the situation isn't pretty.
Holeywell writes how the DOT pays for state projects when using federal funding. Rather than fronting them them the money, the "state departments of transportation enter agreements with the Federal Highway Administration (FHWA), award contracts to construction companies and then rely on getting payments from the feds in order to make payments to the contractors."
But if the trust fund gets too depleted, states will start getting reimbursed less and less frequently, perhaps as rarely as twice a month, Trottenberg warned. Even worse for states: If the situation gets bad enough, the feds might only be able to cover a portion of states’ reimbursement requests. If that happens, states could be forced to pull back on some projects.
How this impending repayment uncertainty to states will play out on Capitol Hill is yet to be seen. Two of the three options listed in Transportation Insolvency 101 for fixing the problem - raising the gas tax or transferring funds from the General Fund, would avert the problem altogether. While Congress is not known for planning in advance to avert financial crises, pressure from the states that legislators represent could be helpful to nudge them to act sooner than later.
FULL STORY: What a Depleted Highway Trust Fund Means for States

Maui's Vacation Rental Debate Turns Ugly
Verbal attacks, misinformation campaigns and fistfights plague a high-stakes debate to convert thousands of vacation rentals into long-term housing.

Planetizen Federal Action Tracker
A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

In Urban Planning, AI Prompting Could be the New Design Thinking
Creativity has long been key to great urban design. What if we see AI as our new creative partner?

King County Supportive Housing Program Offers Hope for Unhoused Residents
The county is taking a ‘Housing First’ approach that prioritizes getting people into housing, then offering wraparound supportive services.

Researchers Use AI to Get Clearer Picture of US Housing
Analysts are using artificial intelligence to supercharge their research by allowing them to comb through data faster. Though these AI tools can be error prone, they save time and housing researchers are optimistic about the future.

Making Shared Micromobility More Inclusive
Cities and shared mobility system operators can do more to include people with disabilities in planning and operations, per a new report.
Urban Design for Planners 1: Software Tools
This six-course series explores essential urban design concepts using open source software and equips planners with the tools they need to participate fully in the urban design process.
Planning for Universal Design
Learn the tools for implementing Universal Design in planning regulations.
planning NEXT
Appalachian Highlands Housing Partners
Mpact (founded as Rail~Volution)
City of Camden Redevelopment Agency
City of Astoria
City of Portland
City of Laramie