FHwA Federal/State Project

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FHwA Joint Federal/State Compliance Project. A cornerstone of fuel tax evasion efforts is the Joint Federal/State Compliance Project. This program is administered by FHwA and funded primarily through the Federal Highway Trust Fund. The project coordinates regional task forces engaged in cooperative audits and criminal investigations of fuel tax evaders by state revenue and transportation agencies, the Internal Revenue Service (IRS), U.S. Department of Justice and, in limited cases, the Federal Bureau of Investigation.

The objective of the Joint Project is to increase the amount of revenue available for highway programs by using Highway Trust Fund tax receipts to expand highway user tax compliance efforts by IRS and the states. A project Steering Committee, co-chaired by FHwA and IRS, coordinates activities of the project. Representatives of the lead states are also members, while FTA, the petroleum industry and transportation organizations serve as ad hoc members.

Initially begun as a pilot program with 12 states in 1991, the joint program has expanded to include 50 states and the District of Columbia. The states are divided into nine different regional tasks force groups as follows: (Lead states underlined.)

The program is allocated $5 million annually from the Trust Fund. Of this funding, $3 million is allocated to the states; lead states are allocated $100,000 while the other states are allocated $50,000. The Steering Committee has adopted a standard reporting form which must be filed by the participating states twice a year to allow FHwA to provide information to the appropriate congressional committees.