Highway Trust Fund Needs Reliable Revenue

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With less than three months before the highway bill enacted last July expires, Congress must move quickly to agree on a reliable source of revenue for the transportation program.

The Highway Trust Fund has historically operated on a “user pays” principle, with funding to maintain and improve the transportation system provided by motor vehicle and fuel taxes.

However, revenues are not indexed to inflation and have not kept up with expenditures.

With less than three months before the highway bill enacted last July expires, Congress must move quickly to agree on a reliable source of revenue for the transportation program.

The Highway Trust Fund has historically operated on a “user pays” principle, with funding to maintain and improve the transportation system provided by motor vehicle and fuel taxes.

However, revenues are not indexed to inflation and have not kept up with expenditures.

“There would be no shortfall in the highway trust fund today had its dedicated revenue source been allowed to grow with inflation,” Concord Coalition Outreach Director Ben Ritz notes in a recent blog post. “But instead of rectifying this problem or finding an alternative source of dedicated revenue, Congress has largely relied on fiscally irresponsible patches funded by general revenue transfers and gimmicks.”

Ritz says congressional leaders should focus on reaching a long-term solution, citing a number of proposals from lawmakers, government commissions, and independent think-tanks that Congress could draw upon.

He concludes: “Our nation’s highway system is at a crossroads, and it’s long past time for politicians on both sides of the aisle who regularly profess their support for a 21st century infrastructure to agree on a responsible way to pay for it.”

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