Washington, D.C. –The U.S. House of Representatives today passed legislation that, while preventing the Highway Trust Fund from going broke, highlights the consequences of Congress’ inability to adopt a sound energy policy for the nation.
“Today we are seeing that there are real consequences to Congress’ inaction in adopting a comprehensive energy policy,” said U.S. Rep. John L. Mica (R-FL), Republican Leader of the Transportation and Infrastructure Committee, a cosponsor of today’s legislation. “We have no sound energy policy or plan to address rising fuel costs. Because of those escalating costs, Americans are driving less.
“Now the Highway Trust Fund is broke.
“Passing this bill today and avoiding this short-term crisis with the Highway Trust Fund is the right thing to do. If we do not act, we could see a $14 billion cut in the federal highway program, important infrastructure projects across the nation will be delayed or cancelled, and as many as 380,000 jobs will be threatened.
“However, Congress must also act responsibly to enact a sound energy policy, immediately begin to work on reauthorizing the transportation bill that expires in only one year, and find a long-term solution to funding infrastructure projects in a sustainable fashion,” Mica said.
H.R. 6532, the Highway Trust Fund Restoration Act, restores to the Trust Fund $8 billion which had been transferred to the General Fund in 1998. The Senate yesterday passed the bill with an amendment to make the transfer immediate. Today’s House vote clears the bill for the President. In light of the most recent Highway Trust Fund projections, the Administration has urged passage of the bill.
“I consider myself to be one of the most fiscally conservative members of the House, but there are some things that we need to address. A first-class national system of transportation is vital to our Nation’s economy,” said U.S. Rep. John J. Duncan (R-TN), Highways and Transit Subcommittee Ranking Member and cosponsor of today’s legislation. “By restoring the money, we are ensuring that the flow of federal highway funds continues to be available for investment in our transportation infrastructure.”
The Department of Transportation announced last week that the Highway Account of the Trust Fund would run out of money by the end of this month, much sooner than anticipated. The Highway Trust Fund depends on taxes on gasoline and diesel fuel and is dedicated to maintaining and improving the nation’s highways and transit systems. Partly due to the high gas prices forcing Americans to drive less, Trust Fund receipts are declining more dramatically than previously expected. Without an infusion of funds, DOT predicts the Highway Account of the Trust Fund will go into the red by the end of September.
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