A group of 15 organizations associated with the transportation industry recently asked the White House for an “immediate infusion” of $37 billion in federal funding for state departments of transportation as relief from the pressures put on those departments by COVID-19.
The groups also asked the President to oppose measures to suspend or permanently repeal a dedicated federal user fee that generates revenue for surface transportation improvements.
The letter, sent by groups like the American Concrete Pavement Association, the American Association of State Highway and Transportation Officials; the American Society of Civil Engineers; Laborers International Union of North America; National Stone, Sand and Gravel Association; and The Surety & Fidelity Association of America, asked the administration to support state transportation programs by replacing some of the revenues they’ve lost as a result of the pandemic.
“With millions of Americans following “stay-at-home” orders, many state DOTs are facing severe losses in dedicated user fee revenues on which state transportation programs heavily rely. As a result, the ability of state DOTs to carry out their core functions, including capital construction programs, is threatened,” the letter said. “Since the beginning of the pandemic, many state DOTs have imposed furloughs and delayed or cancelled $10 billion in critical transportation projects. The American Association of State Highway and Transportation Officials estimates state transportation revenue losses of $37 billion over five years (through FY 2024), with an estimated loss of $16 billion in FY 2020. An infusion of federal funding for state DOTs to address the revenue shortfall will prevent further disruptions to planned transportation projects and allow state DOT employees and transportation construction workers essential to planning and delivering these projects to remain on the job.”
The letter added that the pandemic has negatively affected the Highway Trust Fund. According to the group, the HTF account revenue had fallen by 46 percent by the second half of April, when compared to April 2019. According to the Federal Highway Administration, the HTF will become insolvent sooner than anticipated, the group said.
“Any proposal to suspend or repeal a current HTF user fee without an equivalent replacement would further exacerbate the impending insolvency of the HTF and make finding the federal resources to support the Senate and House surface transportation reauthorization proposals even more difficult,” the groups write.