Highway Trust Fund to Run Out in November

The impending cash flow shortfall is due to continuous and structural cash flow deficit since 2008. If the FHWA does not implement cash management procedures now, the fund will run out in less than two months
 

ForConstructionPros.com

By Jessica Lombardo
 August 30, 2021
 
 The Federal Highway Administration (FHWA) has notified State departments of transportation that Highway Trust Fund (HTF) balances may dip below the threshold of $1 billion. If this occurs, FHWA will need to implement cash management procedures to limit timely reimbursements under the Federal-Aid Highway Program.
 The Highway Account of the HTF is projected to run out of money around early November if FHWA does not implement cash management procedures outlined in the guidance.
 The HTF has been going broke for years as this driver funded program is paid for through the gas tax. Current gas tax revenues on the Federal level have not beenFHWA raised since 1993 and the user fee has not been indexed for inflation.The cash flow shortfall is a result of this continuous and structural deficit since 2008. Further complicating HTF cash flow forecasts is the unusual receipt and outlay patterns created by the COVID-19 pandemic.

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