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A Look at the History of the Federal Highway Administration
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August 7
1937 In accordance with the road user tax anti-diversion requirement of Section 12 of the Hayden-Cartwright Act (See June 18, 1934), BPR reduces New Jersey's Federal-aid funds by $250,000 for FY 1937. The Act stated that decreased funding was justified because ". . . it is unfair and unjust to tax motor vehicle transportation unless the proceeds of such taxation are applied to the construction, improvement or maintenance of highways." The only other State to lose funds is Massachusetts, with BPR action taken on June 2, 1938 ($472,862 in FY 1938 funds), but the provision, along with an improving economy, brought diversion under control.
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