The Arkansas State Highway and Transportation Department (AHTD) was one of the state transportation departments nationwide that was notified Monday that federal funds for state projects will stop after May 31.
Transportation Secretary Anthony Foxx said in a letter that the Federal Highway Administration (FHWA) will be unable to provide new federal funds to the states and that federal reimbursements on all projects, including those under construction, will be halted entirely.
AHTD Director Scott Bennett said he anticipated the stop in funding if Congress did not take appropriate action in time.
“Although we have been preparing for reductions or delays in federal-aid reimbursements, we now have to consider the impacts of a complete FHWA shutdown,” Bennett said.
Since December 2014, AHTD has evaluated each of its scheduled federal aid projects prior to bidding to ensure the state had sufficient funds to meet its commitments should delays or reductions in federal reimbursements take place. To date, AHTD has withdrawn 70 construction projects valued at $282 million from its 2015 bid opening schedule.
