Roadscapes Wednesday: Fix The Trust Fund

By Nathan Young on June 25, 2014

So think about this? What happens when the Highway Trust Fund runs out? In 64 days, we will find out what happens, unless Congress does something. You see, the Highway Trust Fund has done things from building the Interstate Highway System to re-building that old bridge down the street. Federal funding has accounted for approximately 45 percent of what state Departments of Transportation spend on highway and bridge capital improvements. But without a fix to the trust fund, the trust fund will run out of money, as early as August, so I could celebrate my birthday with no funding to fix our roads, a brilliant move! I want you to take a look at the chart below.

Based on current spending and revenue trends, the U.S. Department of Transportation estimates that the Highway Account of the Highway Trust Fund will encounter a shortfall before the end of fiscal year (FY) 2014.

The Highway Account began FY 2014 with approximately $1.6 billion in cash.
A $9.7 billion transfer from the General Fund to the Highway Account was processed shortly after the start of the fiscal year ($10.4 billion authorized in MAP-21, reduced by sequestration).
The cash balance has dropped by nearly $3.2 billion since the General Fund transfer occurred. As of April 25, 2014, the Highway Account cash balance was $8.7 billion.

And if you think having no money for the Highway Trust Fund is no big deal, then take a look at the economic impacts by looking at the chart below.

Simply, we must fix the Highway Trust Fund! And Congress needs to quit fighting each other and get the job done! So the American Society Of Civil Engineers have launched Fix The Trust Fund. The mission is simple, Congress must find a way to replace the funding troubles currently in place because the gas tax has not been raised in over 20 years. What type of funding will be used to pay for our roads, I guess we will find out. But we must fix the Highway Trust Fund, or get ready to pay more in gas and vehicle repairs, and more time stuck in traffic!