Federal Transportation Funds to Decrease August 1

U.S. Treasury Secretary Anthony Foxx warned State DOT officials in a July 1 letter that due to declining funds in the highway account of the Highway Trust Fund, he will implement a new reimbursement policy that may cause some states to halt projects.

2 minute read

July 3, 2014, 6:00 AM PDT

By Irvin Dawid


"In a (Monday) briefing with reporters, (Transportation Secretary Anthony) Foxx announced that he had sent letters to the Departments of Transportation of all 50 states that very morning outlining the steps the administration was planning to take as the trust fund approaches zero," writes Sam Stein, political editor and White House correspondent for The Huffington Post.

When the funds fall below the critical $4 billion threshold as expected on August 1, "states will no longer be reimbursed for transportation projects as they send in the bills. Instead, the administration will 'implement a new process of cash management' in which states will be paid every two weeks as revenues from the gas tax (which feeds the Highway Trust Fund) come in," adds Stein.

As a result, Stein notes that "(i)n some states, projects would be slowed down. In others they would be stopped altogether."

“I think it is going to be all over the map, but the reality is, no matter how you slice and dice it, it is going to be bad,” said Foxx.

Stein goes on to mention the Corker-Murphy Plan to reauthorize MAP-21 and provide the necessary funding by increasing gas taxes, but notes that "Foxx gave no indication that the White House would throw its weight behind a gas tax hike." As we have noted, the president prefers using a windfall that would result from his business tax reform proposal, and historically, Obama opposes increases the gas tax, presumably because he views it as increasing taxes on the middle class.

However, Foxx didn't close the door entirely on the president agreeing to a gas tax increase.

“If Congress comes up with a different combination, another formulation to get there, we said we will listen to what they have to say,” he said. “But they have to speak with one voice.”

Tuesday, July 1, 2014 in The Huffington Post

Single-family homes in a suburban neighborhood in Florida.

New Florida Law Curbs HOA Power

The legislation seeks to cut down on ‘absurd’ citations for low-level violations.

June 16, 2024 - The Guardian

Multistory apartment building under construction.

New Tennessee Law Allows No-Cost Incentives for Affordable Housing

Local governments in the Volunteer State can now offer developers incentives like increased density, lower parking requirements, and priority permitting for affordable housing projects.

June 10, 2024 - Nooga Today

Pumping Gas

10 States Where the Gas Tax Is Highest

As the gap between gas tax revenue and transportation funding needs widen across the country, the funding mechanism is drawing increased scrutiny from both public officials and consumers.

June 9, 2024 - The Ascent

Brick high-rise apartment buildings in New York City

Study: Housing Crisis is About Affordability, not Supply

New research shows that there is no overall shortage of housing units, but all U.S. metropolitan areas face a severe lack of affordable units for low-income renters.

5 hours ago - University of Kansas

Couple on one side of desk with banker on other side looking at paperwork.

Are Race-Based Lawsuits Affecting Community Lenders?

Shelterforce spoke with community lending leaders and experts about the current mood across the sector. What, if anything, are organizations doing to avoid becoming the next target of conservative activists?

6 hours ago - Shelterforce Magazine

Rendering of Glory Park in Lewisville, Texas.

New Park Promotes Community and Connectivity in Lewisville, Texas

The city of Lewisville just celebrated the opening of Glory Park/Parque la Gloria, helping to improve park access and the quality of life for residents.

7 hours ago - Lewisville Leader

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.