Tighter federal fuel emission standards for cars and light-duty trucks will cut nearly $72 billion from the Highway Trust Fund by the end of fiscal 2025, according to the American Road & Transportation Builders Association.
The Transportation Department earlier this week finalized rules requiring vehicles to have a fuel economy of 54.5 mpg by model year 2025, a move aimed at reducing U.S. oil consumption by 12 billion barrels. But the Corporate Average Fuel Economy standards will also further squeeze the HTF, the main funding mechanism for highway and road projects.
The new standards will cut about $61 billion dollars for highway projects and $10.8 billion in transit spending by the end of fiscal 2025, according to the ARTBA analysis. Congress has had to inject more than $35 billion into the fund in recent years to prevent it from bankruptcy. As of the end of July, the HTF’s highway account had a balance of about $9.5 billion, a 42.6 percent decrease from the same period a year ago, according to the Federal Highway Administration.
Contact Mark Szakonyi at firstname.lastname@example.org. Follow him on Twitter @szakonyi_joc.