[“Obama administration warns states that road funds near gone” – Reuters 7.1.14]
Reuters reports that declining revenues from gas taxes could result in a slowing or hypothetical drying up of federal funds for state road projects.
The Obama administration warned states on Tuesday that federal highway funds will be largely depleted in August, limiting the money states can expect to pay for road and bridge projects this summer.
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Transportation Secretary Anthony Foxx told states the government will slow federal reimbursement for highway repairs in August as the U.S. Highway Trust Fund drops below a critical threshold next month. The fund is replenished by gas tax revenues, which have dried up as Americans have driven less and used more fuel-efficient cars.
Political finger-pointing has resulted, even as Congress is scrambling to address broader spending issues with stopgap measures.