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.

Related Content

  • $25 Billion in US budget savings from switching federal freight shipments to carriers using alternative fuels
    August 3, 2012
    A new report from a Washington, DC, energy policy group urges the federal government to begin allocating its US$150 billion budget for transport services to carriers that fuel their fleets on domestically produced natural gas, electricity, biofuels and other alternatives to diesel and gasoline.
  • Incentive schemes target single occupancy commuters
    October 14, 2016
    Andrew Bardin Williams looks at state-run schemes to encourage green transportation habits with raffles, gift cards, competitions and frequent traveller points. The societal benefits of green transportation are obvious: less congestion, cleaner air and healthy economy. Equally the advantages for individuals are pretty clear too: a healthy lifestyle, freedom of movement and the feeling of being a part of something greater than oneself.
  • Joined-up thinking for future ITS
    May 8, 2015
    David Crawford looks at a US model which, for modest federal funding, is producing substantive results. Outward and upward is the clear message emerging from the US$458,000, 2015 workplan of the US government’s ENTERPRISE (Evaluating New TEchnologies for Roads PRogram Initiatives in Safety and Efficiency) joint funding scheme for ITS research.
  • NHTSA studies hacking risks to automated vehicles
    May 21, 2013
    A report by Bloomberg says that rising hacking risks to drivers as their cars become increasingly powered by and connected to computers have prompted the US’s auto-safety regulator to start a new office focusing on the threat. “These interconnected electronics systems are creating opportunities to improve vehicle safety and reliability, but are also creating new and different safety and cybersecurity risks,” David Strickland, head of the National Highway Traffic Safety Administration, said at a recent Senat