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Warnings from the Obama Administration to Michigan and Others About Road Funding

Michigan is already struggling to find funds to fix crumbling roads and now concerns that planned money from the federal government may not be making its way here either.

The federal government now considering a hike in fuel taxes as well is reporting that the Obama administration is warning transportation officials here and elsewhere that if Conress fails to address shortfalls in the Highway Trust Fund, payments to individual states for infrastructure projects could be severely limited or eliminated.

Those from the U. S. Department of Transportaton say they will “continue to take every possible measure to fullly reimburse your state for as long as we can,” said Secretary Anthony Foxx.  He added, though, that that could become by difficult without quick congressional action.  “However, as we approach insolvency, the department will be forced to limit payments to manage the reduced levels of cash available in the Trust Fund.”

He cautioned that the fund could be depleted by late August or September.

The article indicates federal officials are weighing some of the same options those in Michigan are considering, including raising fuel taxes and reforming other taxes to raise the revenue.

Despite the warnings, transporation officials in Michigan are confident members of Congress will come to terms on a plan that will secure the necessary funding to avoid any cuts.

Join Jo Anne Paul and Steve Gruber weekdays from 5:30 to 9 AM on 1240 WJIM-AM and the Stations of the Michigan Talk Network.  Join the discussion by calling our hotline at (888) 900-9966!



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