Skip to main content

Study: How to fund Interstate highways in a way truckers and drivers can support

As the US Congress once again struggles to find funding for a long-term highway bill, a new Reason Foundation study details why truckers should embrace the use of tolling to finance the reconstruction and modernisation of aging Interstate highways, describes how all-electronic tolling can solve the industry’s previous privacy and logistical concerns about toll roads and proposes a set of rules to ensure that the tolls paid by truckers and motorists are used only to rebuild and widen the newly tolled Inters
July 24, 2015 Read time: 3 mins

As the US Congress once again struggles to find funding for a long-term highway bill, a new Reason Foundation study details why truckers should embrace the use of tolling to finance the reconstruction and modernisation of  aging Interstate highways, describes how all-electronic tolling can solve the industry’s previous privacy and logistical concerns about toll roads and proposes a set of rules to ensure that the tolls paid by truckers and motorists are used only to rebuild and widen the newly tolled Interstate corridors.

The report outlines federal and state legislation that could eliminate the trucking industry’s previous objections to tolling. Truckers would be guaranteed that: Toll rates for the reconstructed Interstates would be set to cover only the capital and operating costs of the tolled infrastructure; Tolling of existing Interstate routes would not begin until that section of highway had already been reconstructed and re-opened to traffic; Tolls would replace current state gas taxes on Interstates, to avoid double taxation; and toll revenues would only be spent on rebuilding, widening, and maintaining the tolled highways.

“The trucking industry has the most at stake in ensuring a solid future for the Interstate highway system,” said Robert Poole, director of transportation policy at Reason Foundation.  

“But truckers have been wary of toll roads because they fear, rightly so, that any new Interstate tolling will turn those highways into cash cows for states, with that money being diverted to other projects, not to the highways used by trucks. However, with full use of today’s electronic tolling technology, plus strong legal highway user protections, toll-financed Interstate modernisation would be an attractive value proposition for truckers and other highway users.”

Historically, the trucking industry has suggested raising gas and diesel taxes instead of implementing tolls. However, Poole notes that paying for the estimated US$1 trillion cost of reconstructing and widening the aging Interstate system would require far more than the modest fuel tax increases being discussed by Congress (which are, in any event, unlikely to be enacted). Even then, Poole says “the new revenue would very likely be spread across all the myriad programs currently supported by the Highway Trust Fund, diverting most of it away from major highways such as the Interstates. Truckers wouldn’t get good value for their fuel tax increase.”

The study also examines existing tolling technology that would protect proprietary route information and will soon allow trucking companies to receive a single, consolidated bill for all tolls on all toll roads used nationwide each month by a fleet of trucks. This technology would eliminate the problem of needing different transponders and receiving individual bills from each state.

Related Content

  • March 13, 2015
    ARTBA proposes path to breaking gridlock on transportation funding
    The American Road & Transportation Builders Association (ARTBA) has outlined a detailed proposal it believes could end the political impasse over how to fund future federal investments in state highway, bridge and transit capital projects. The ‘Getting beyond gridlock’ plan would marry a 15 cents-per-gallon increase in the federal gas and diesel motor fuels tax with a 100 per cent offsetting federal tax rebate for middle and lower income Americans for six years. The plan, ARTBA says, would fund a US$401 bil
  • June 5, 2015
    Tolling is the 21st century’s road funding solution
    HNTB’s Rick Herrington and Brad Guilmino put the case for tolling. Tolling is becoming the 21st century solution of choice for generating additional user-based transportation revenue. The proven funding source is being seriously considered for expanded use by cities, states and even the federal government with support from elected officials across the political spectrum. In fact, with each federal transportation reauthorisation, tolling restrictions have been relaxed.
  • May 24, 2017
    IBTTA calls on Congress to repeal regulation on tolling interstate highways
    The White House has released President Trump’s fiscal year 2018 budget, including a US$200 billion investment in infrastructure projects over the next 10 years with a focus on leveraging the power of public private partnerships. The International Bridge, Tunnel and Turnpike Association (IBTTA) has responded, saying the government should repeal the burden of regulation and give states maximum flexibility to use financing tools to meet their local needs. 35 states and territories throughout the country have u
  • April 20, 2012
    The case for tolling the Interstates
    Speaking at an event organised by the IBTTA last week to an audience of federal and state transportation officials, policy experts, financial analysts, and representatives from engineering firms, technology companies, and transportation facility operators, Ed Regan of Wilbur Smith Associates articulated a clear case for giving states flexibility to toll existing interstate highways.