State DOTs Might Lose $8.7 Billion in Highway Funds

Unless issues are sorted out by the 30 September 2009 expiration of the SAFETEA-LU program, the Federal Highway Administration (FHWA) has notified state DOTs that $8.7 billion in budget authority will be rescinded from their unobligated federal-aid highway balances by that expiration date. While for some states this would not have a direct effect, in many states this order would result in an actual cut in funding for highway construction projects. Each state would lose budget authority in a proportion that matches its percent of the total highway funds that were provided over the six-year life of SAFETEA-LU.