As the two graphs below indicate, both the Highway Account and the Mass Transit Account of the Highway Trust Fund are nearing insolvency.

With the Highway Account expected to become insolvent by the end of the summer, the Department of Transportation may consider implementing cash management procedures to manage the flow of federal dollars. If the Department implements cash management procedures, reimbursements to states for infrastructure work will be limited to the available cash in the Trust Fund.  Additionally, the Department would distribute incoming funds in proportion to each state’s federal formula apportionment in the fiscal year.

Highway Account

Based on current spending and revenue trends, the U.S. Department of Transportation estimates that the Highway Account of the Highway Trust Fund will encounter a shortfall before the end of fiscal year (FY) 2015.

• The Highway Account began FY 2015 with approximately $9.2 billion in cash.
• The summer construction season results in large weekly disbursements to States, and the Highway Account is projected to reach insolvency the first week of September.

Mass Transit Account

Based on current spending and revenue trends, the U.S. Department of Transportation estimates that the Mass Transit Account of the Highway Trust Fund will have a balance of approximately $0.2 billion at the end of FY 2015.

• The Mass Transit Account began FY 2015 with approximately $3.5 billion in cash.
• Continued disbursements in excess of receipts will result in decreasing balances, with estimated insolvency by the end of October, 2015 (Q1 FY 2016).