Skip to Content
Streetsblog New York City home
Streetsblog New York City home
Log In
Gas Tax

We Need an Ambitious Transpo Bill. So How Are We Going to Pay for It?

Unknown.pngDOT Secretary Ray LaHood testifying in the Senate yesterday.

Yesterday, the Senate Committee on Commerce, Science and Transportation held a hearing about the future of national surface transportation. This much isn't in doubt: Current policies need a major overhaul. What to change and, especially, how to pay for it are very much in question.

Several panelists spoke about the need to reform the nation's transportation priorities and set firm goals, like reducing car dependence and traffic deaths. Shifting away from policies that emphasize highway capacity and reward gas consumption didn't sit that well with senators from states like South Dakota and Texas, but there was a broad sense that the next surface transportation bill must reverse years of underinvestment in the nation's infrastructure. Nevertheless, Secretary of Transportation Ray LaHood reiterated the Obama administration's opposition to a
promising funding solution -- raising the gas tax -- and obeyed the directive from up top to never again mention a tax on vehicle miles (VMT).

At around the same time, a very different story was unfolding in the House, where James Oberstar (D-MN), chairman of the Transportation and Infrastructure Committee, pushed for his preferred funding solution, a VMT tax. Asserting that the technology to implement this solution is already available, he asked his committee to rapidly advance the timetable: "Why do we need a pilot program? Why don't we just phase it in?" Since Oberstar has taken a leading role in shaping the next transportation bill, this may mean that a VMT tax will be included in the first draft.

Back at the Senate hearing, several panelists called attention to the impending insolvency of the Highway Trust Fund, which uses money raised by the gas tax to pay for transit and roads projects. Steve Heminger, director of the San Francisco Bay Area Metropolitan Transportation Commission, estimated that the U.S. needs to invest at least $225 billion annually in its transportation infrastructure. We're only spending about 40 percent of that today, and the downward trend in driving means the fund is drying up. Few options will suffice to raise the needed revenue, he said, other than increasing the gas tax or imposing a VMT fee.

LaHood skirted the funding issue and focused on rethinking existing
transportation priorities. "Our initial focus will be on expanding the
transportation choices available to American families," he said. LaHood
repeatedly described his intention to help communities become more transit-friendly, walkable
and bikeable. He cited the administration's desire to get Americans out of their cars, but never made the link that higher gas prices create powerful incentives to reduce car dependence. His prepared testimony instead asked for "innovative" ideas from Congress to address
the transportation funding dilemma, leaving aside any specifics.

Stay in touch

Sign up for our free newsletter

More from Streetsblog New York City

On Christmas, Let’s Consider the Successes of the Livable Streets Movement

Here's a short, heartwarming film about the successes experienced this year by the livable streets movement.

December 25, 2024

And the Winners Are…: It’s Time for the 2024 Streetsie Awards!

Let's start our annual year in review series with a broad roundup of the heroes, scoundrels and debacles of 2024.

December 24, 2024

Tuesday’s Headlines: Green Christmas Edition

We got our Christmas presents early yesterday. Plus other news.

December 24, 2024

Congestion Pricing Dream Lives On After Two Judges Rule in MTA’s Favor

New York won two major victories in court on Monday after federal judges declined to put the skids on congestion pricing's Jan. 5 launch — and hinted that they don't think the lawsuits to stop the program will succeed.

December 23, 2024

Streetsblog Year in Review: The Biggest Sustainable Transport News of 2024

It was a busy year in the movement to end car dependency — and there's a lot more to come.

December 23, 2024
See all posts