Presentation by Meredith Decker, an Associate Analyst in CBO’s Budget Analysis Division, to Congressional staff.
Presentation by Sarah Puro, Principal Analyst in CBO’s Budget Analysis Division, at the Annual Conference of the National Federation of Municipal Analysts. The Fixing America’s Surface Transportation Act, which was signed into law on December 4, 2015, provided $281 billion in contract authority for surface transportation programs through 2020. But projected spending from the Highway Trust Fund exceeds its revenues. Under current law, CBO estimates that the Highway Account of the Highway Trust Fund will be able to meet obligations through 2021 and the Transit Account through 2020. Some proposals involve establishing a new entity to finance infrastructure investments. However, even if such an entity is not officially a federal agency, its activity might be considered part of the federal budget.
Presentation on Capitol Hill in a Panel Discussion with Local Leaders, by Sarah Puro, Principal Analyst, Budget Analysis Division, Congressional Budget Office
The Highway Trust Fund is projected to face shortfalls in 2015 and 2016 as spending is estimated to exceed revenues. Congress has several options to address the shortfall, including reducing spending, increasing gas taxes, or providing transfers from other funds. Any new financing entities established by Congress to fund infrastructure would be considered part of the federal budget if they receive federal funds and are subject to federal control. Under federal budgeting rules, loan and loan guarantee programs are accounted for based on their estimated net cost to the government at the time loans are issued.