UPDATE 1-US Senate approves $8 bln for highway trust fund

(Adds senate, trade group comment)

WASHINGTON, Sept 10 (Reuters) - The U.S. Senate approved $8 billion in taxpayer revenue on Wednesday to close a widening deficit in the account that funds highway construction projects.

The chamber, by voice vote, approved a measure originally passed by the House of Representatives in August to tap general tax revenues to rescue the highway fund, which is supported by gas tax receipts.

The House will have to review a change in the Senate version to make the money available immediately before the package can be sent to the White House for signature.

Final action is expected as early as Thursday.

The Bush administration, after initially opposing the infusion, reversed course last week and said it was now necessary to prevent the Highway Trust Fund from running out of money at the end of the month.

Gasoline tax receipts have dropped steadily with the rise in pump prices this year. Gasoline prices nationally are down in recent weeks but are more than 80 cents higher than a year ago, the Energy Department said this week.

In response, motorists are driving less and are using more efficient cars, Transportation Department officials said.

Federal authorities were in the process of stretching out payments to states to ease the cash flow burden. Work on some road and bridge projects worth hundreds of millions of dollars had been put on hold, officials said.

John Horsley, executive director of the trade group representing state transportation departments, said state governments are "breathing a collective sigh of relief" now that Congress has voted to fill the $8 billion hole.

Sen. Max Baucus, a Montana Democrat and Finance Committee chairman, said Congress acted responsibly to address the shortfall.

"This is about the safety and integrity of our public infrastructure system, which means job creation and American competitiveness in the global economy," Baucus said.

The federal government funds about 80 percent of road construction projects.

Congress and the Bush administration wrangled for months about the severity of the trust fund shortfall but came together just weeks before lawmakers are scheduled to leave town again - possibly for the year. (Reporting by John Crawley; editing by Carol Bishopric)