Congress Bail Out of Highway Trust Fund
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Posted: 11:47 AM Sep 11, 2008
Congress Bail Out of Highway Trust Fund
CHARLESTON, W.Va. (AP)
State road officials from Charleston to California are breathing a little easier, as Congress seems poised to bail out the bankrupt federal highway trust fund.
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State road officials from Charleston to California are breathing a little easier, as Congress seems poised to bail out the bankrupt federal highway trust fund.

The fund went bust this month because federal gas tax revenues failed to meet projections by about $8 billion.

States rely on that money to pay for highway projects and to pay off the debt on bonds that are based on anticipated federal grants.

Wednesday, the Senate approved a plan that plugs the budget hole in the fund and the House could follow as early as Thursday. But highway planners and analysts say that's only a quick fix for a long-term structural problem.

Brent Walker, spokesman for the West Virginia Department of Transportation, said Congress is going to have to reevaluate the wisdom of relying on gas taxes to replenish the fund.

With people driving less and therefore paying less in gas taxes, the highway trust could face similar budget problems in the future.