2014 Outlook for Transportation
December 23, 2013 2:57 PM
Revenues from the federal gasoline tax, which is not indexed to inflation, are barely sufficient to cover repairs to existing roads. (Image: Federal Highway Administration)
Randy Anderson
New highway construction in the U.S. would be curtailed if the Highway Trust Fund is not restored to solvency by 2015. (Image: North Texas Tollway Authority)
Ian Wagreich/USCC
"The question is whether there will be enough political courage and will to deal with raising highway user fees. It's a question of political leadership, in the White House and in Congress," according to Janet Kavinoky, U.S. Chamber of Commerce.
Rep. Earl Blumenauer, D-Ore.. is sponsoring a bill that would raise the federal gasoline tax by 15 cents per gallon on a three-year, phased-in basis.
Rep. Tom Graves R-Ga., and Sen. Mike Lee, R-Utah, have introduced bills that would lower the federal gas tax to 3.7 cents per gallon over five years and transfer responsibility for highway funding to states.
Road projects would benefit from an increase in the federal highway tax, but some doubt that Congress will vote to raise taxes in an election year.
"Congress really has to act on the Highway Trust Fund before it runs out sometime in 2014," Jim Tyman, American Association of State Highway and Transportation Officials, says.
"We had been hopeful it would have been completed before the holidays, but it seems clear there will be an agreement on a [water infrastructure] conference bill in early 2014," according to Kurt Nagle, American Association of Port Authorities.
