A Transportation Department official told lawmakers Wednesday that a funding shortfall in the agency’s highway trust fund could delay reimbursements to U.S. states carrying out infrastructure work, Reuters reported Wednesday.
Elvina Nawaguna writes Peter Rogoff, DOT’s acting policy undersecretary, discussed the fund’s impending deficit before the House Transportation subcommittee on highways and transit.
DOT officials have warned that the fund, which relies primarily on gasoline tax receipts, will run dry by fiscal year 2015, according to Nawaguna’s report.
“If the trust fund were to become insolvent, hundreds of thousands of jobs across the nation could be at risk and our ability to address the many road, rail, and transit needs in every state will be severely impeded,” Rogoff told legislators, Reuters reports.
Rogoff projects that highway project funds will drop below $4 billion in July and transportation funds will drop below $1 billion in August, according to the article.
A measure that provides two-year funding for road and bridge construction projects is slated to expire Sept. 30.