Highway Trust Fund Deadline

Therese W. McMillan
Federal Transit Administration
July 14, 2015

Dear Colleague:

As you know, the most recent Congressional extension of the current surface transportation authorization, Moving Ahead for Progress in the 21st Century, is set to expire in less than 3 weeks on July 31.

As you may recall from the 2-day surface authorization lapse that occurred in March 2010, while revenue will still be deposited in the Highway Trust Fund, if Congress does not act prior to July 31, no new contract authority will be available for capital projects, essential maintenance, or operational support.

As a result, it is likely that some agencies would be forced to reduce vital transit services or cut routes. However, the Federal Transit Administration would continue to have the ability to reimburse grantees for costs obligated prior to the authorization lapsing subject to the availability of funds in the Mass Transit Account. If Congress doesn't take appropriate action the highway account would reach critical levels requiring cash management in this coming August and the Mass Transit account would reach similar critical levels this fall.

As you may know, the Administration's GROW AMERICA proposal and FY 2016 budget would request a call on Congress to enact a 6-year, $478 billion surface transportation reauthorization proposal in an effort to provide long-term stability. Not only does this proposal provide States and local transit agencies with extended funding certainty, it also increases overall transportation investment by 45 percent, providing funding growth and smart policy reforms to strengthen the American economy.

Please do not hesitate to contact me if I can provide additional information or assistance on this matter.

Sincerely yours,

Therese W. McMillan
Acting Administrator