Title: Highway Trust Fund Basics: A Primer on Federal Surface Transportation Spending | The Heritage Foundation
Headings: Highway Trust Fund Basics: A Primer on Federal Surface Transportation Spending
Highway Trust Fund Basics: A Primer on Federal Surface Transportation Spending
Highway Trust Fund Overview
Condition of the Nation’s Roads and Bridges
State Action on Transportation Funding
Proposed Approaches to Address the Highway Trust Fund Budget
Conclusion
Authors

Content: In fiscal year (FY) 2015, Highway Trust Fund spending is projected to reach $52 billion. The Highway Account is expected to spend $44 billion, but take in only $34 billion in revenue and interest, while the Mass Transit Account is expected to spend $8 billion compared with $5 billion in revenue, resulting in a combined deficit of $13 billion. The annual deficits are expected to grow. By 2025, the Congressional Budget Office (CBO) predicts that the Highway Trust Fund will take in only $38 billion, but spend $60 billion [8] for a $22 billion deficit if current trends continue. If the Highway Trust Fund continues spending as projected by the CBO, it would generate a $180 billion deficit over the next decade, pushing the potential cumulative shortfall to $168 billion. Because the Highway Trust Fund by law is not allowed to run a negative balance and requires approximately a $5 billion minimum balance to meet obligations as they come due, Congress would need to transfer money from the general fund, cut spending, increase revenue, or some combination of these to keep the fund solvent. [ 9] If Congress fails to address the impending insolvency, the Department of Transportation estimates that it will have enough funds to continue normal operations through the end of July. [ 10] Then, the Department of Transportation would need to employ various cash-management measures, such as across-the-board cuts and payment delays, to keep disbursements flowing to the states. Such measures would increase uncertainty in already authorized projects. [ 11]
Long-Term Funding Issues.