What Happens to Our Loans if the Dedicated Federal Fuel Tax Goes Away?
It sounds like the Biden administration wants to divert federal fuel tax money to the general revenues. That way he can spend it any way they like, not just on highways. We are not sure yet if this includes the portion returned to the states. If it does, many states will have a big problem, including Arkansas. Politicians have gotten in the habit of taking out a bond issue financed by 20 years of Federal Highway Fuel Tax revenues. If those monies now go to the general revenues of FEDGOV, the state will have to make good on those bond payments with other money, from somewhere.
I've had a long history of opposing such bond issues. They basically give whoever is in charge now the budget of whoever will be in charge 15 or 20 years from now. Ironically in this case, Mike Huckabee could have spent all the federal highway money that otherwise his daughter would get to spend. Basically, the politician who takes twenty years of highway dollars and spends them in eight better hope he made the right decisions, because that money isn't available for the next guy (or gal).