The House Transportation and Infrastructure Committee held a hearing Wednesday on the thorny issue of how to pay for the federal government’s funding of highway and mass transit projects. The main source of funds, the Highway Trust Fund, is projected to run out of money by 2028, according to a May analysis by the Congressional Budget Office.
“The issue before us today is how do we ensure we have the resources to build and maintain a surface transportation system that will meet the needs of our nation and allow us to remain competitive in the 21st century,” said U.S. Rep. Rick Crawford, R-Ark., in opening remarks.
The budget dilemma for the Highway Trust Fund is that it is primarily supported by federal taxes on gasoline and diesel fuel, along with heavy-duty truck fees. But as vehicles have become more fuel-efficient and electric vehicles grow in number, reliance on fuel taxes will no longer be viable.
In 2022, the Highway Trust Fund spent $52 billion on highways and $7.2 billion on transit, according to CBO data. In the same year, state and local governments spent more than three times as much, or $180 billion, on highways, according to testimony by Chad Shirley, principal analyst for the microeconomic studies division at the CBO.
States have already begun to look at alternative funding sources for transportation projects, including charging a vehicle per-mile fee. At least 10 states have enacted pilot programs, according to data submitted to Congress by the Eno Center for Transportation, and many more are researching such programs.
Reema Griffith, executive director of the Washington State Transportation Commission, said at the hearing that the state has been assessing “road usage charging” since 2012. “[Road-usage charging] provides long-term revenue stability and sustainability by removing the impacts that growing vehicle fuel efficiency and alternative fuels have on today’s consumption-based gas tax revenue generation,” Griffith said.
“Since 2012, 31 states have approved plans to increase revenue through additional bonds, fuel taxes, vehicle registration fees, and tolling,” said U.S. Rep. Rick Larsen, D-Wash., ranking member of the House transportation and infrastructure committee. “Additionally, at least 33 states assess annual EV fees, ranging from $50 to $225.” He added that Congress could learn from these states’ attempts at solving the funding issue.
“We cannot emphasize enough the need for stable and predictable funding from the [Highway Trust Fund] that makes it possible for state DOTs to plan for large projects that need a reliable flow of funding over multiple years,” said Kris Strickler, director of the Oregon Department of Transportation and a board member of the American Association of State Highway and Transportation Officials, at the hearing.
