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Foster Urges Transportation Secretary to Address Payer State Problem

Apr 15, 2016
Press Release

Washington, DC – In a letter to Transportation Secretary Foxx, Congressman Bill Foster (IL-11) called for the awarding of more transportation grants to Payer States.

Payer States receive less in federal funding than they pay out in federal taxes. Illinois, for example, faces an annual shortfall of $40 billion because of this problem.

Under current law, formulas used to award federal transportation funds disproportionately benefit states that pay less in federal taxes than Payer States like Illinois.

“I urge you to use any flexibility you have in the awarding of discretionary grants to help make whole states that are not getting their fair share,” Foster wrote.

“There are many states which contribute substantially more in taxes than they receive in spending. This has been devastating in Illinois in particular, which loses $40 billion each year. If Illinois had been breaking even for the last two decades, the state government would not be in the dire financial straits it finds itself in now. You currently have the opportunity to help balance the scales in transportation spending by awarding more discretionary grants to Payer States. I urge you to do so.”  

The full letter is available here.