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

This 2013 issue brief by the Environmental and Energy Study Institute examines the funding crisis of the U.S. Highway Trust Fund (HTF), noting that federal fuel taxes have not been adjusted in 20 years. The document analyzes the resulting infrastructure deterioration, the reliance on General Fund transfers to maintain solvency, and various policy options—including inflation indexing, fuel tax increases, and vehicle miles traveled (VMT) fees—to close a $112 billion annual funding gap.

• The Highway Trust Fund (HTF), which relies on federal fuel taxes for approximately 90 percent of its revenue, has lost significant purchasing power because federal fuel taxes have not been changed in 20 years. This has led to deteriorating transportation infrastructure, with the American Society of Civil Engineers' 2013 Report Card giving U.S. transit and roadway infrastructure a grade of D and identifying a $112B annual funding gap to achieve a state of good repair over 20 years.
• Fuel sales volume has declined from its 2007 peak, dropping 4.3 percent by 2011. This decline is attributed to changing population demographics—specifically a higher proportion of people over 62 and increased urbanization—as well as rising Corporate Average Fuel Economy (CAFE) standards for cars and trucks. The CBO projects that CAFE standards proposed for Model Year 2017-2025 could reduce HTF cash flow by 21 percent by 2040.
• To avoid the need for General Fund transfers and maintain a positive balance in FY15, a gasoline tax increase of 4.5 cents per gallon would be required. To avoid cash flow management procedures that delay fund distribution to states, a 7.5 cent increase is needed. A 10 cent increase would restore the HTF to a $10.7B balance by the end of FY15.
• To prevent infrastructure from deteriorating further beyond its current D rating, annual spending must increase by $12-$13B, which would require a minimum gasoline tax increase of 12.5 cents in FY15. To address the full $112B annual funding gap, a 15 cent gasoline tax increase in FY15 would fund 8 percent of the gap in that year and 17 percent thereafter.
• Indexing fuel taxes to the Consumer Price Index (CPI) is presented as a viable long-term solvency tool. If federal rates had been indexed to the CPI starting in January 1994, the gasoline tax would have increased by 12 cents per gallon by 2013, and 2011 revenue would have been approximately $52B instead of $34B. Florida is cited as a successful example, having indexed its fuel tax to the CPI since 1991, resulting in the nation's lowest share of structurally deficient bridges.
• The document discusses replacing fuel taxes with a Vehicle Miles Traveled (VMT) fee, which would decouple revenue from fuel efficiency gains and more accurately reflect infrastructure wear, particularly from heavy trucks. Oregon conducted two three-month pilots where participants paid 1.6 cents per mile; subsequently, the Oregon legislature passed a voluntary VMT program for 5,000 drivers at a rate of 1.5 cents per mile.

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} }