With the continued inaction of the US Legislature on transportation funding, the cliff is rapidly approaching with the US Transportation Secretary Anthony Foxx starting to prepare state’s for going over the said cliff. In early July 2014 letters were sent to all 50 state departments of transportation detailing the actions that would be taken in the face of the shortfall. During the first week of August, the administration anticipates that the fund will be below its $4 billion threshold. It is at this point that states will no longer be reimbursed for transportation bills that they send in. Instead states will be paid every two weeks as revenues from the existing gas tax are made available. This will have a profound impact on states and many will have to stall their transportation improvement programs entirely. Foxx urged Congress to act swiftly on the matter so that such a dire situation would be avoided.
