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Iowa road work peaks, federal funding in question

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May 31st, 2014 by Ric Hanson

DES MOINES, Iowa (AP) — Summer is peak road construction time in Iowa and work is underway on dozens of projects, but questions about whether federal money will continue to flow has state officials concerned. The federal highway fund gets most of its money from federal fuel taxes but revenue has fallen in recent years as motorists drive less and cars become more efficient, reducing the amount of fuel needed.

Congress in recent years has transferred billions of dollars from the general fund to keep road projects going. The highway fund needs a $10 billion infusion to remain solvent this year and $8 billion to get it through next year. Money is needed by July or federal reimbursements to states will be cut back, forcing states to come up with money or curtail construction projects.