Some States May Lose Federal Highway Funding

Missouri's highway department has been selling equipment and eliminating employees to generate funds for road repair. These desperate measures are in recognition of the fact that unless it changes state law, it could lose tens of millions of federal highway dollars as a penalty for not adopting new safety requirements for commercial truck drivers, according to an Associated Press Report.

The report adds that about one-third of states have indicated they may not meet a Jan. 30 deadline for their driver's license offices to require interstate truck drivers to provide proof from a medical professional that they are healthy enough to drive, according to the Federal Motor Carrier Safety Administration.

States that fail to comply with the mandate could lose 5 percent of their highway funds. In Missouri’s case, that’s about $30 million.

If states remain out of compliance for a second year, that penalty doubles. However, as long as states submit a plan to obey the mandate, they could be granted a grace period.

Officials in Colorado, Kansas and Oklahoma also say they will not be able to meet the deadline. Federal officials indicate, however, that they may not start deducting penalties until 2014.

Other states like Virginia are creating their own infrastructure banks, offering loans and credit assistance to public and private sponsors of surface transportation projects like highway construction, transit or rail projects.

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