So let’s give people more money to not work, and spend less on infrastructure.
Check it out:
The federal government will start reducing road and transit payments in August, potentially leaving states scrambling to cover the gap.
With U.S. infrastructure funding set to run out, Transportation Secretary Anthony Foxx said Tuesday that the continued failure of Congress to help the Highway Trust Fund has forced him to cut back on project reimbursements.
“Normally states receive an annual allotment. They forward their bills to U.S. [Department of Transportation] and we pay those bills as we get them,” Foxx said during a breakfast organized by the Christian Science Monitor. “But during the first week of August, the Highway Trust Fund will drop below the crucial point, and we will stop reimbursing states when each bill comes and instead implement a new process of cash management to help us move through this unfortunate period of time.
“States will be paid not as they sent their bills in, but every two weeks as money from the gas tax comes in,” Foxx continued. “This is we believe the most equitable approach, but there is to be very clear, no good option when we’re talking about a trust fund that is running short in supply of dollars.”
The announcement comes as Congress is at a standstill in the debate about approving a new transportation funding bill. Lawmakers are struggling to come up with a way to close an annual shortfall in the Highway Trust Fund, estimated at about $16 billion per year.