WASHINGTON -- Transportation Secretary Mary Peters says a major federal highway fund will run out at the end of the month and that could be bad news for the future of El Paso area highways.

Peters blames the shortage of funds on the high price of gas and Americans driving less. It's an alarming downside of the American "staycation."

Americans drove 40 billion fewer miles from November to May. That's good news for the environment and the cost of fuel, but it's bad news for Texas roadways.

Chris Lippincott, spokesperson for the Texas Department of Transportation, said much of El Paso's transportation funding comes from the Federal Highway Trust Fund. That fund relies on revenue from federal highway taxes.

"It's a tremendous concern for us," said Lippincott. "When you look at an area like El Paso, because they are a growing community, they have a lot on the line."

The Federal Highway Administration estimates it will amount to a 34 percent cut in federal highway programs in fiscal year 2009. The resulting effect would be an estimated loss of $859 million in federal funds for Texas in fiscal year 2009. The cuts could also cost about 29,000 Texas jobs.

The costs to build are adding to the state's obstacles. According to Aashto, the American Association of State Highway and Transportation Officials, in the past five years, the cost of concrete shot up 36 percent; asphalt is up 70 percent; steel is up 105 percent, and diesel to fuel the equipment is up 300 percent.

"It means that many projects in the pipeline are going to be stopped," said Tony Kane, the director of Engineering for Aashto. "It means that states are going to be telling construction contractors 'Forget it, there's no jobs this year.'"

Sec. Peters is pushing a measure working it's way through Congress that could put an additional $8 billion dollars to shore up the fund. It has passed the House and the Senate may pick it up when Congress resumes next week.

"Right now, all eyes are on the Senate to see what happens," Lippincott said. He said the Texas DOT hasn't made any decisions on what will be cut.

Kane said even if the $8 billion fix does pass, the federal government needs to figure out more permanent solution for highway funding in the future. "It's a real bandaid. It's a short term fix. It's going to get us through this fiscal year but next fiscal year its going to be the same thing."