Fix the Highway Trust Fund
The Highway Trust Fund (HTF) was set up in 1956 to build and maintain a nationwide transportation network. The HTF was traditionally a self-supporting bank account, collecting revenue from excise taxes on motor fuel. Unfortunately, gas and diesel taxes, which are set at 18.4 cents and 24.4 cents per gallon respectively, haven’t been raised since 1993. As a result, the Highway Trust Fund is hovering near insolvency, and our bridges, roads, and transit systems are paying the price.
Fortunately, there’s a way to fix the Highway Trust Fund. We need to increase the federal gas tax by 5 cents per year for 5 years along with authorizing the next surface transportation bill – the successor to the FAST Act.
The tax has not been raised since 1993, and the revenues have not kept pace with system needs.
America’s Infrastructure Needs Help
2 out of every 5 miles of America’s urban interstates are congested
9.1% of bridges are structurally deficient
Transit faces $90 billion maintenance backlog
Grades and statistics from the 2017 ASCE Infrastructure Report Card
We Are Investing At a Rate That’s Over 25 Years Old!
The HTF, which pays for improvements and construction of roads, bridges, and transit systems, is funded by the federal gasoline tax, currently 18.4 cents a gallon.
The tax has not been raised since 1993, and the revenues have not kept pace with system needs. While the price of every other household good—like bread, milk, or a new car—has nearly doubled in price, as a nation we are trying to pay for 2018 transportation using 1993 dollars.
The federal tax on a gallon of gas:
A new car cost:
A gallon of gas cost:
A loaf of bread cost: