The money will allow the Department of Transportation to continue to pay reimbursements to states for highway projects undertaken with the commitment of federal dollars. Without the general fund bailout the DOT likely would have rationed highway grant payments, forcing states to postpone projects.
Highway Trust Fund receipts have been gradually declining as Americans drive fewer miles in response to high fuel prices and the recession, or drive more fuel-efficient vehicles that require less gas purchases. The bulk of the trust fund’s money comes for gas and diesel taxes.
Congress is also working on a temporary solution to cover an estimated shortfall of $10 billion in the trust fund during fiscal year 2010.
“States are in the midst of the peak of their construction seasons, and the prospect of a slowdown in receiving their federal funding would be devastating. Not only are jobs at stake, but the economic boost of the recovery program would be jeopardized unless final action is taken,” said John Horsley, executive director of the American Association of State Highway and Transportation Officials, in a statement.
The Senate must still vote on the measure.
