U.S. highway fund crushed by cutback in driving
As drivers cut back on gas, The Department of Transportation says its Highway Trust Fund will be depleted and needs an $8 billion emergency infusion.
NEW YORK (CNNMoney.com) — An unprecedented decline in driving will deplete the federal Highway Trust Fund by the end of September prompting the government to ask Congress for an $8 billion emergency infusion Friday.
Gasoline sales are crucial to maintaining the nation’s highway infrastructure. About 90% of the fund’s total revenues comes from taxes on motor fuels, according to a July report from the Congressional Budget Office.
Without the additional money, the Department of Transportation will not be able to fully reimburse states for their highway investments. Already in September, department officials are projecting getting $4.4 billion in state requests but collecting only $2.7 billion in revenues.