Transportation Secretary Mary Peters announced Friday that the federal highway trust fund will be bankrupt as of October.   Funded by the 18.4 cent/gallon gas tax and 24.4 cent/gallon diesel tax, the fund has been headed in this direction for quite some time, but its faster demise is attributed to Americans’ driving habits in reaction to high gas prices - the number of miles traveled has dropped more than 50 billion over the past eight months.   The DOT has been warning Congress about the dire situation for three years.

Peters said that beginning in October, expenditures will outstrip revenues by about $8 billion.  Peters asked Congress to provide up to $8 billion so that planned highway and bridge projects could continue.   Peters also implored Congress not to pork up highway legislation bill with earmarks - that last transportation bill approved by Congress contained 6,000 earmarks totaling $24 billion.

DOT press release

Highway shortfall may halt highway projects - New York Times

Bush Ends Oppostion to Highway Fund Boost - Wall Street Journal

Highway Trust Fund nearly out of gas - Washington Post