House Approves $7 Billion for Highway Trust Fund

The House of Representatives voted to inject $7 billion into the Highway Trust Fund (HTF). The House approved a measure July 29 to keep the fund solvent through Sept. 30, the end of the fiscal year and the expiration date for the current surface transportation law.

The House approved the bill in 363 to 68 vote. The Senate may vote on a similar measure to temporarily shore up the trust fund, which feeds $40 billion a year to the states to maintain highways and bridges, before its August recess begins.

The White House estimates that without at least $5 billion in immediate aid the HTF could go broke within weeks. Declining fuel demand is draining the trust fund of money more quickly than expected. Federal gasoline and diesel tax receipts fuel the trust fund.

Congress will address longer term plans for surface transportation funding when it returns from its recess. The House and Senate are divided over whether to pass a $500 billion multi-year "transformational" reform bill or an 18-month extension of the current law.

The crux of the debate is how to pay for the billions of dollars in infrastructure improvements that experts say the country needs: whether to raise federal fuel taxes or come up with new financing methods.

Source: Journal of Commerce