Status of Highway Trust Fund

LEGISLATIVE ISSUE BRIEF
March 8, 2014
STATUS OF THE HIGHWAY TRUST FUND AND MASS TRANSIT ACCOUNT
The Congressional Budget Office (CBO) released estimates of the fiscal condition of the Highway Account and Mass Transit
Account (MTA) of the Highway Trust Fund (HTF). In its analysis, CBO explained that it estimates that the MTA will be able
to meet all obligations during Fiscal Year 2014, but will be unable to meet obligations at some point in Fiscal Year
2015. CBO expects outlays from the account to exceed revenues, leaving the transit account with a balance of about $2
billion at the end of the year. For the Highway Account, the situation is more problematic. CBO estimates that in the
highway account will likely have difficulty meeting obligations sometime during the latter half of Fiscal Year 2014.
According to CBO, there will be a mismatch between the timing of revenues credited to the fund and when bills need to
be paid from the fund. US DOT’s own HTF revenue projections estimate that, before the end of the current fiscal year,
the balances of the mass transit account and the highway account will each drop to levels that would require the
Department to delay or reduce reimbursements to transit agencies and State highway departments until sufficient
revenues are credited to the HTF.
HIGHWAY TRUST FUND PROJECTIONS
CBO February 2014 Baseline, By Fiscal Years, in Billions of dollars
Highway Account
Fiscal Year
Beginning-of-year Balance
Revenues and Interest
Intragovernmental Transfers
Outlays
End-of-Year Balance
2013
10
32
6
44
4
2014
4
33
10
46
1
2015
1
34
0
46
-
Fiscal Year
Beginning-of-year Balance
Revenues and Interest
Intragovernmental Transfers
Outlays
End-of-Year Balance
2013
5
5
0
7
2
2014
2
5
2
8
2
2015
2
5
0
8
-
2016
34
0
46
-
2017
2018
34
0
46
-
34
0
46
-
2019
34
0
47
-
2020
34
0
47
-
2021
34
0
48
-
2022
34
0
48
-
2023
34
0
49
-
2024
34
0
49
-
Mass Transit Account
2016
5
0
8
-
2017
5
0
8
-
2018
5
0
9
-
2019
5
0
9
-
2020
5
0
9
-
2021
2022
2023
2024
5
0
10
-
5
0
10
-
5
0
10
-
5
0
10
-
-86
-27
-100
-32
-114
-37
-129
-43
Cumulative Shortfall (at current revenues and spending levels)
Highway Account
Mass Transit Account
n.a.
n.a.
n.a.
n.a.
-12
-1
-24
-5
-36
-8
-48
-13
-60
-17
-73
-22
Congress will need to address shortfalls in revenue to the Highway Trust Fund (HTF) and Mass Transit Account (MTA),
possibly before the end of FY 2014, in order to preclude delays in reimbursements and to support new authorizations and
obligations in FY 2015. State transportation departments will soon be faced with decisions on ceasing new projects, and
slowing down payments to contractors. Transit agencies may soon have to consider implementing Title VI procedures for
service reductions if a solution to this situation is not found before the end of the current Fiscal Year.

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