The Bond Buyer: No Easy Fix for Highway Trust Fund
media mentionBy Jim Watts
Congress delayed but did not fix a $100 billion hole in federal transportation spending with the enactment last Friday of legislation providing $10.8 billion to extend solvency of the rapidly shrinking Highway Trust Fund by 10 months.
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The gasoline tax is quickly losing steam and purchasing power, according to the Institute on Taxation and Economic Policy, a Washington-based non-profit that studies state and federal tax policies.
“The gasoline tax is the single largest source of funding for transportation infrastructure in the United States, but the tax is on an unsustainable course,” ITEP said. “Sluggish gas tax revenue growth has put strain on transportation budgets at the federal and state levels, and has led to countless debates around the country about how best to pay for America’s infrastructure.”