Highways: States Oppose Looming $8.7-Billion Cut

09/02/2009

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State transportation officials are hoping Congress will cancel an $8.7-billion rescission of unobligated highway funds that is due to occur on Sept. 30. The Federal Highway Administration notified states on Aug. 25 how large a cut each would incur. California would lose the largest sum, $794 million.

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In the 2005 Safe, Accountable, Flexible, Efficient Transportation Equity Act: a Legacy for Users, Congress mandated the rescission to take effect on the measure’s last day, Sept. 30, as a way of trimming the legislation’s overall price tag.

Key Senate lawmakers already have indicated they support undoing the highway-fund reduction. But when Congress returns from its August break on Sept. 8, it will have only three weeks to act on the rescission.

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