Trust Fund Crisis Means States Receive Partial, Delayed Reimbursements
Transportation Secretary Anthony Foxx has notified state transportation officials that as of Aug. 1 the federal government no longer will be making same-day payments to reimburse states for completed road work.
The Highway Trust Fund that supports states’ road work is expected to be insolvent by August if Congress does not agree on a temporary or long-term funding plan.
Foxx said in a July 1 letter that the checks will go out only twice a month and amount to only partial payments.
“We have attempted to provide states with the most equitable, straightforward approach possible for managing this crisis,” Foxx said in the letter.
“To that end, we will distribute incoming funds in proportion to each state’s federal formula apportionment in this fiscal year,” he said, adding that he’s restricting travel and administrative spending in his department until the issue is resolved.
States will receive notification of their first proportional share Aug. 11, Foxx said.
“This process will be repeated twice a month as additional tax receipts are deposited into the trust fund,” he said. “At the beginning of each semi-monthly cycle, you will receive a new cash allocation.”
Foxx told state DOT leaders in the letter that there still is time for Congress to act on a long-term solution.
“Our transportation infrastructure is too essential to suffer continued neglect, and I hope that Congress will avert this crisis before it is too late,” he said.
