FOR IMMEDIATE RELEASE                    Contact: Adriana Surfas
Wednesday, July 23, 2008                           (202) 225-3661     

Congress Acts to Prevent Shortfall in Highway Trust Fund

Washington , D.C. – Congresswoman Rosa L. DeLauro (CT-3) joined with her colleagues to pass the Highway Trust Fund Restoration Act (H.R. 6532), which is needed to address a projected shortfall in the Highway Trust Fund.  According to the American Association of State Highway and Transportation Officials (AASHTO), the shortfall could lead to a devastating $14 billion, or 34%, reduction in federal highway investment in 2009, which as we are working to strengthen the U.S. economy, would lead to the loss of nearly 380,000 jobs.

Connecticut , according to the Federal Highway Administration, could see funding reductions could of as much as $160.5 million if the problem is not fixed. This means the states share of the highway funds would be reduced from approximately $482.8 million to approximately $322.2 million beginning in October.  Additionally, Connecticut could lose nearly 5,600 jobs. 

“This projected shortfall in the Highway Trust Fund does not just threaten critical federal investment in our nation’s transportation system that ensures the safety of our roads and allows for congestion relief efforts. With the resulting job loss, the shortfall threatens to further erode our work to bring the economy out of this recession,” said DeLauro. “I was pleased to join with my colleagues to introduce this legislation that will shore-up the Highway Trust Fund and prevent harm to our transportation infrastructure and our economy.”

The 2005 bill that set our nation’s transportation policy – the Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users (SAFETEA-LU) – provided  $41.2 billion for Federal-aid highways and $10.34 billion for public transportation in 2009.  Unfortunately, Highway Trust Fund revenues are falling behind what was anticipated when SAFETEA-LU was enacted in 2005.  This legislation ensures full funding of the highway and public transportation investment levels authorized by SAFETEA-LU of 2005.

This bill restores $8.017 billion in highway-user taxes to the Highway Trust Fund.  These highway user fee revenues were transferred to the General Fund in 1998, as part of an overall deficit reduction deal.  Both the Congressional Budget Office and the Joint Committee on Taxation have determined that this legislation does not constitute a spending outlay, would not violate pay-go rules, and will have no revenue effect.

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www.house.gov/delauro