The Trump administration may eliminate the Highway Trust Fund and prohibit states from using highway formula dollars for transit projects, according to Politico. If passed as part of the Surface Transportation Act reauthorization legislation – which would go into effect Oct. 1, 2026 – the move would “annihilate state and local transportation budgets,” according to Transportation for America.
The mass transit account was created in 1982, to help raise taxes to support the Highway Trust Fund. President Ronald Reagan signed it into law in 1983.
American Public Transportation Association President and CEO Paul Skoutelas urged Trump to reject the plan to cut off this significant source of federal funding for mass transit: “These reckless proposals would devastate Americans in cities, suburbs, and rural communities across the country – cutting off critical transit services that provide access to jobs, health care and education,” he said.
“We’re not going to be spending money on murals and train stations or bike paths or walking paths,” said Rep. Sam Graves, R-Mo., chair of the House Committee on Transportation and Infrastructure. “We’re going to spend money on traditional infrastructure… that’s roads and bridges.”
Source: Smart Cities Dive
