Summary
The Congressional Budget Office (CBO) projects that the highway account of the Highway Trust Fund (HTF) will have difficulty meeting its obligations by the end of fiscal year (FY) 2014. According to a letter from the secretary of the Department of Transportation (DOT), the highway account will dip below a critical threshold of $4 billion as early as July, and the transit account will fall below $1 billion in August. Once the HTF approaches the threshold, DOT has indicated it will use cash-management strategies to avoid insolvency, which may include delaying reimbursements to states. This Issue Brief provides answers to questions about the looming HTF shortfall.