Issue Brief: Federal Funding for U.S. Transit and Roadway Infrastructure

The U.S. Highway Trust Fund (HTF), which relies on federal fuel taxes that have not been adjusted since 1993, is facing insolvency due to rising costs and declining fuel consumption. The document argues that current funding is insufficient, contributing to a 'D' grade for national infrastructure and an annual funding gap of $112 billion. It evaluates several solutions, including indexing fuel taxes to inflation or construction costs, increasing the per-gallon tax rate, and transitioning to a vehicle miles traveled (VMT) fee to better align costs with infrastructure wear, particularly from heavy trucks.

• The Highway Trust Fund (HTF) is facing a critical solvency crisis because federal fuel taxes have not been adjusted in 20 years, while construction costs have risen and fuel consumption has declined. This has led to annual shortfalls since 2008, forcing the government to use general funds to meet obligations.
• U.S. transportation infrastructure is in poor condition, receiving a grade of 'D' in the American Society of Civil Engineers’ 2013 Report Card. There is an estimated $112 billion annual funding gap required to return roads, bridges, and transit to a state of good repair over a 20-year period.
• The current allocation of HTF funds to public transit is considered insufficient. While transit passenger miles increased by 12 percent between 2004 and 2011, the HTF Mass Transit Account receives only 2.86 cents of the per gallon fuel tax, and 22 percent of the total $112 billion annual infrastructure funding gap is specifically related to transit.
• Indexing the federal fuel tax to the Consumer Price Index (CPI) could have prevented the need for general fund transfers. For example, if indexed since 1994, the gasoline tax would have increased by 12 cents per gallon by 2013, and 2011 revenue would have been approximately $52 billion instead of $34 billion.
• To maintain current infrastructure service levels and avoid general fund transfers, a minimum increase of 12.5 cents in the FY15 gasoline tax is required. To address the full $112 billion annual gap, a 15 cent increase is proposed, which would fund 17 percent of the gap from FY16 onwards.
• Increasing Corporate Average Fuel Economy (CAFE) standards for cars and trucks will further reduce HTF revenues. The CBO projects a 21 percent reduction in cash flow by 2040 due to these standards, which could be offset by a two cent per gallon increase starting in 2015.
• A vehicle miles traveled (VMT) fee is proposed as an alternative to fuel taxes to better correlate costs with infrastructure wear. This is particularly relevant for heavy trucks, as one 80,000-pound truck causes as much pavement damage as roughly 750 automobiles weighing 3,800 pounds.

APA

Haven, P. (2013). Issue Brief: Federal Funding for U.S. Transit and Roadway Infrastructure. Environmental and Energy Study Institute. https://www.eesi.org/papers/view/issue-brief-federal-funding-for-u.s.-transit-and-roadway-infrastructure

Chicago

Haven, Paul. Issue Brief: Federal Funding for U.S. Transit and Roadway Infrastructure. Environmental and Energy Study Institute, 2013. https://www.eesi.org/papers/view/issue-brief-federal-funding-for-u.s.-transit-and-roadway-infrastructure.

Wikipedia

{{cite report |last1=Haven |first1=Paul |title=Issue Brief: Federal Funding for U.S. Transit and Roadway Infrastructure |publisher=Environmental and Energy Study Institute |date=8 August 2013 |url=https://www.eesi.org/papers/view/issue-brief-federal-funding-for-u.s.-transit-and-roadway-infrastructure |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{haven2013issue, author = {Haven, Paul}, title = {{Issue Brief: Federal Funding for U.S. Transit and Roadway Infrastructure}}, institution = {Environmental and Energy Study Institute}, year = {2013}, month = aug, url = {https://www.eesi.org/papers/view/issue-brief-federal-funding-for-u.s.-transit-and-roadway-infrastructure}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }