Submitted by Trinity on
On July 1, 2014, Secretary of Transportation Anthony Foxx sent a letter to state departments of transportation (DOTs) outlining the Federal Highway Administration’s (FHWA’s) cash management plan to address the insolvency of the Highway Trust Fund (HTF). If no legislative remedy to the shortfall is enacted, beginning August 1 state reimbursements will be subject to delays and reductions, based on collections into the HTF.
The Senate Finance Committee is working on a bipartisan proposal to fund the HTF through the end of the calendar year; it is expected to mark up a bill next week. In addition, the chairman of the House Ways and Means Committee is in talks with the Senate Finance Committee to see if a bipartisan and bicameral approach can be developed.
The following documents provide additional information for states, including a “frequently asked questions” document that addresses issues such as:
- The schedule for notifying states of their cash allocations and approving reimbursement requests
- The method for determining each state’s share of available cash
- Flexibility FHWA is providing to states
- Interest payments on delayed federal reimbursements
Letter to state DOTs:
http://www.dot.gov/grow-america/highway-account-cmp-letter-to-state-dots
Frequently asked questions on cash management procedures:
http://www.dot.gov/grow-america/htf-cmp-faqs
Other resources:
http://www.dot.gov/highway-trust-fund-ticker