This week the federal government will start delaying payments for projects that are currently underway to fix the nation’s roads and bridges.
The federal Highway Trust Fund that finances transportation projects are running low on funds.If Congress doesn’t act soon the Department of Transportation may postpone payments to states. According to the Committee for a Responsible Federal Budget, this could cause interruptions on highway construction this summer.
The delay on highway projects will cause traffic and conditions of roads throughout the U.S. The highway fund receives its revenue mainly from federal gas tax, however the fund spends more then it gains. Congress has contributed money from general U.S. tax revenue to the fund which is about $54 billion.
The federal agency will have less than $4 billion in its trust fund and will postpone same day reimbursements to states that have ongoing construction on highways. Instead states will now be receiving money in two installments one in early August and then again two weeks later when gas tax revenue comes in, according to the letters.
By the end of August the fund will diminish immensely and could be empty by early September if there is no bill.This will halt many projects and improvements of roads and highways. State governors and local transportation agencies must decide on the bill.
If projects and construction are postponed traffic and congestion will occur along major highways along with United States.
