Highway Trust Fund in Trouble

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Proceeds from federal fuel taxes and a variety of other fees go into the federal Highway Trust Fund (HTF) — the primary funding mechanism for the nation’s surface transportation system. The HTF provides support for a variety of highway and transit programs, including formula-based state grants and specific projects and programs as directed by Congress. The HTF currently faces myriad problems including insufficient revenues relative to current spending levels, a revenue stream with declining relative value, a lack of spending prioritization for the most beneficial projects, and looming insolvency in the fund’s immediate future.

 

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