Federal Funding for U.S. Transit and Roadway Infrastructure

The U.S. Highway Trust Fund (HTF), which relies on fuel taxes unchanged since 1993, faces insolvency due to rising costs and declining fuel consumption. The document argues that current funding is insufficient to maintain a state of good repair, citing a $112B annual funding gap. It evaluates several solutions, including indexing fuel taxes to inflation, increasing the per-gallon tax rate, implementing vehicle miles traveled (VMT) fees, or shifting to a fuel sales tax, while highlighting the interdependence of highway and transit systems for economic efficiency.

• The Highway Trust Fund (HTF) is facing insolvency because federal fuel taxes have not been adjusted in 20 years, while construction costs have risen and fuel consumption has declined.
• There is a significant funding gap to maintain U.S. infrastructure; the American Society of Civil Engineers' 2013 report indicates an annual gap of $112B to bring roads, bridges, and transit to a state of good repair over 20 years.
• The HTF's reliance on fuel taxes is being further eroded by increasing vehicle fuel efficiency standards (CAFE), with the CBO projecting a 21 percent reduction in cash flow by 2040.
• Indexing the federal fuel tax to the Consumer Price Index (CPI) since 1994 would have increased the gasoline tax by 12 cents per gallon by 2013 and would have kept the HTF solvent without the nearly $50B in general fund transfers used between 2008-2010 and 2013-2014.
• To achieve a 'state of good repair' and support economic growth, the document suggests a 15 cent gasoline tax increase for FY15, which would fund 17 percent of the total funding gap thereafter.
• A vehicle miles traveled (VMT) fee is proposed as an alternative to fuel taxes to decouple revenue from fuel efficiency gains and more accurately charge for infrastructure damage, noting that one 80,000-pound truck causes as much pavement damage as roughly 750 automobiles.

APA

Environmental and Energy Study Institute (2013). Federal Funding for U.S. Transit and Roadway Infrastructure. https://www.eesi.org/files/IssueBrief_Transportation_Infrastructure_Funding_080813.pdf

Chicago

Environmental and Energy Study Institute. Federal Funding for U.S. Transit and Roadway Infrastructure. 2013. https://www.eesi.org/files/IssueBrief_Transportation_Infrastructure_Funding_080813.pdf.

Wikipedia

{{cite report |author=Environmental and Energy Study Institute |title=Federal Funding for U.S. Transit and Roadway Infrastructure |date=August 2013 |url=https://www.eesi.org/files/IssueBrief_Transportation_Infrastructure_Funding_080813.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{environmentalandenergystudyinstitute2013federal, author = {{Environmental and Energy Study Institute}}, title = {{Federal Funding for U.S. Transit and Roadway Infrastructure}}, institution = {Environmental and Energy Study Institute}, year = {2013}, month = aug, url = {https://www.eesi.org/files/IssueBrief_Transportation_Infrastructure_Funding_080813.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }