Congressional Budget Calls for Cuts to Federal Funding for Transportation

Last week, House and Senate Republicans agreed to a budget framework that would reduce highway and transit funding by 22%, which translates to about $12 billion in spending cuts.
 
Of course, the budget can be reworked, but the clear message out of Washington is the federal government wants to spend less on infrastructure. While a long-term highway bill still is being discussed, the annual funding levels will not be increased as hoped, and will likely be reduced.
 
Congressional Budget Office (CBO) analyst Sarah Puro said last week that current receipts in the Highway Trust Fund may not cover all of the money obligated for construction projects in 2015 - an additional $16 billion minimum cut next year will be needed.
 
In related news, a bipartisan pair of senators has filed legislation to create a new tax credit for infrastructure projects. Sponsored by Sens. Ron Wyden (D-Ore.) and John Hoeven (R-N.D.), the "Move America Act of 2015”  would expand the availability of tax-exempt bonds and create a new tax credit for state and local governments who are trying to pay for large construction projects.