US seeks $8 bln from Congress for highway funding

WASHINGTON, Sept 5 (Reuters) - The Bush administration on Friday sought $8 billion immediately from Congress to close a fast growing shortfall in tax receipts used to reimburse states for highway construction projects.

Transportation Secretary Mary Peters told reporters the agency would also take the unprecedented step of stretching out payments to states, from daily to weekly, to ease the government's cash flow problem.

"We can't write checks if we don't have money in the account," Peters said.

With motorists driving less due to sharply higher fuel prices this year, government coffers funded by gasoline tax receipts are drying up much faster than expected, Peters said. (Reporting by John Crawley; editing by John Wallace)