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

  • Commuting habits come under scrutiny
    March 28, 2017
    Cities have a moral responsibility to encourage the smart use of transportation and Andrew Bardin Williams hears a few suggestions. Given the choice of getting a root canal, doing household chores, filing taxes, eating anchovies or commuting to work, nearly two-thirds of Americans said that they wouldn’t mind commuting into work—at least according to a poll conducted by Xerox (now Conduent) over its social media channels at the end of 2016.
  • US DOT announces funding opportunity to improve bus service nationwide
    March 31, 2016
    The US Department of Transportation’s Federal Transit Administration (FTA) has announced the opportunity to apply for approximately US$266 million in competitive grant funding for bus programs nationwide. The funding consists of US$211 million in grants for buses and bus facilities projects, as well as US$55 million specifically for FTA’s Low and No Emission (Low-No) bus program, which promotes technologically-advanced and environmentally-friendly buses. These investments will help advance the President’
  • Americans want more action and enforcement to improve highway safety
    May 16, 2012
    At a time when there is intense debate about the role of government, a majority of Americans support additional laws and want more action by government officials to improve highway safety, a new survey released yesterday by the AAA Foundation for Traffic Safety claims.
  • Rating agency Standard and Poor Tolling sees a bright future for tolling
    September 6, 2017
    Few disruptions appear on the horizon for global toll road operators, with the US poised to become a better bet for major investment, according to ratings agency Standard and Poor’s (S&P’s) Global Ratings’ 2017 report, which rates toll road operators according to their ability to raise capital. The outlook is generally stable for business conditions and credit quality for toll roads worldwide. One positive exception is the US where the overall outlook is ‘positive’ as S&P expects traffic growth to increase