The distribution of federal highway revenues to the states ended on Sunday night thanks to Congress’ failure to extend surface transportation funding. This means that transit agencies and highway departments may temporarily lack funds to pay their bills.
Democrats in Congress had proposed to extend funding through the end of the year as a part of a bill extending unemployment compensation. But Kentucky Republican Senator Jim Bunning objected to the unemployment bill, since there was no money to pay for it. So the House passed a bill extending transportation funding for four weeks, but Bunning objected to that as well. Bunning agreed yesterday to drop his objections, but the funds will remain frozen for a few more days.
