Federal Funding for U.S. Transit and Roadway Infrastructure

This policy brief examines the funding crisis facing the U.S. Highway Trust Fund (HTF), noting that federal fuel taxes have not been adjusted since 1993. It details the resulting infrastructure deterioration, the reliance on General Fund transfers to maintain solvency, and various proposed solutions including inflation indexing, fuel tax increases, and vehicle miles traveled (VMT) fees.

• The Highway Trust Fund (HTF), which receives approximately 90 percent of its revenue from federal fuel taxes on gasoline and diesel, has lost significant purchasing power because these per-gallon fees have not been changed in 20 years.
• U.S. surface 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 annual funding gap of $112 billion required over 20 years to bring roads, bridges, and transit to a state of good repair.
• The HTF has faced annual shortfalls since 2008 due to a halt in fuel sales growth, driven by increasing urbanization, an aging population, and higher Corporate Average Fuel Economy (CAFE) standards. To address this, Congress has transferred billions from General Funds, including $15 billion in 2008-09 and $12.6 billion projected for 2014.
• The Moving Ahead for Progress in the 21st Century Act (MAP-21), signed in July 2012, authorized $105 billion for surface transportation for FY 2013 and 2014. However, it did not change the taxes needed for maintenance and repair, leaving the HTF facing projected insolvency shortly after FY14.
• To restore the HTF to solvency and maintain current service levels (preventing further deterioration beyond a D rating), a minimum gasoline tax increase of 12.5 cents for FY15 is required, alongside annual CPI indexing.
• Alternative funding models include a federal sales tax on fuel or a vehicle miles traveled (VMT) fee. Oregon has piloted VMT programs where drivers paid 1.6 cents per mile; the state legislature later passed a voluntary VMT program for 5,000 drivers at 1.5 cents per mile.

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} }