Skip to main content

Compromise possible on US transportation funding

Following President Obama’s State of the Union address, republicans are indicating that they are open to compromising with the president on increasing US transportation funding, although neither side has offered specifics on how they would pay for new construction projects. According to The Hill, Obama has called for Congress to pass a bipartisan infrastructure plan, including using savings from tax reform to pay for transportation projects, although he stopped short of calling for an increase in the fe
January 23, 2015 Read time: 3 mins
Following President Obama’s State of the Union address, republicans are indicating that they are open to compromising with the president on increasing US transportation funding, although neither side has offered specifics on how they would pay for new construction projects.

According to The Hill, Obama has called for Congress to pass a bipartisan infrastructure plan, including using savings from tax reform to pay for transportation projects, although he stopped short of calling for an increase in the federal gas tax, which has been sought by many transportation advocates to help pay for it.

House Transportation Committee chairman Bill Shuster, who has opposed prior efforts to increase the gas tax, said Republicans might be able to find agreement with Obama on infrastructure funding, even though they disagree with almost everything else the president laid out during his address.

“I believe that it is imperative that we repair our crumbling infrastructure through fiscally responsible legislation,” Shuster said. “As chairman of the Transportation and Infrastructure Committee, I am working to pass a surface transportation bill that makes investments in our nation’s roads and bridges to keep America competitive in a global economy."

Republican leaders in the Senate also spotlighted transportation funding as a potential area of agreement in the new era of even more divided government that follows Republicans taking control of both chambers of Congress this month for the first time since 2006.

Transportation advocates have pushed for an increase in the 18.4 cent per gallon tax to help pay for infrastructure projects and the idea has picked up some steam on Capitol Hill, as gas prices have declined sharply in recent months.

The gas tax, which predates the development of the Interstate Highway System, has been the traditional source for transportation projects since its inception in the 1930s.

The tax, which has not been increased since 1993, brings in about $34 billion per year. The federal government typically spends about $50 billion per year on road and transit projects, and transportation advocates have maintained that the larger figure is only enough to maintain the current state of the U.S. infrastructure network.

Major road and transit improvements will require a higher annual funding level, they argue, which would result in an even higher infrastructure budget without an infusion of cash from a source like the gas tax.
UTC

Related Content

  • January 12, 2015
    Momentum builds for increase in US fuel tax
    The possibility of a gasoline tax increase to help pay for federal highway improvements was attracting increased attention in the US Congress as a prominent conservative Republican on Thursday said he was willing to consider the move. According to Reuters, Senator Orrin Hatch, the new chairman of the Senate Finance Committee that oversees tax measures, told reporters he has an open mind on raising the 18.4 cents per gallon tax levied at the gasoline pump. "I prefer not to increase taxes, but to me tha
  • October 13, 2015
    Politicisation of US transportation funding
    Andrew Bardin Williams looks at how a political stalemate and a series of short-term fixes is undermining America’s highway funding and curtailing long-term planning. It was a week before the deadline to renew funding for the Highway Trust Fund, and the clock was ticking.
  • January 20, 2012
    Infrastructure spending is an investment in economic recovery
    Transportation funding is caught in the crossfire as the President calls for infrastructure investment and a reinvigorated Republican majority in the House pushes back on federal spending. Andrew Bardin Williams reports. Every few months some politician or pundit declares that the country is on the verge of making the most important political decision in a generation. The 2006 mid-term election; the 2008 Presidential election; the passing of the stimulus bill; healthcare reform; the mania surrounding Tea Pa
  • July 10, 2014
    House proposes US$10.5 billion eight-month highway bill
    The US Government House Ways and Means Committee is proposing a US$10.5 billion, eight-month transportation funding bill to push the debate over road and transit spending into the next Congress. The proposal, which calls for a temporary extension of current transportation funding levels until 31 May 2015, comes as lawmakers try to come up with a way to replenish the Department of Transportation's depleted Highway Trust Fund before a predicted August bankruptcy date. The traditional funding source fo