Skip to Content
Streetsblog New York City home
Streetsblog New York City home
Log In
Federal Transportation Bill

Flashback: Ronald Reagan Touts Gas Tax Hike, Transit Funding as Job Creators

On January 6, 1983, the icon of the modern conservative movement, Ronald Reagan, signed legislation to raise the gas tax for the first time in more than two decades, devoting a portion of the revenue to transit.

We've been reading about this moment a lot, as the current GOP leadership in the House tries to undo Reagan's legacy by eviscerating dedicated transit funding.

In this ABC News clip, you can see that Reagan touted the measure, a five cent gas tax increase, as an economic catalyst. It would raise $5.5 billion for transportation investment and result in 320,000 new jobs, the administration said. The measure even reserved one cent per gallon for transit, all for the cost of about $30 a year for the average driver.

Sounds like a win-win, right? After some initial resistance to the idea, Reagan eventually came around to that perspective, even if some special interest groups (truckers) didn't.

What a difference 29 years makes.

Stay in touch

Sign up for our free newsletter

More from Streetsblog New York City

Thursday’s Headlines: Gateway ‘Terminator’ Edition

President Trump abruptly announced he'd "terminated" the Gateway Tunnel project while taking aim at Chuck Schumer. Plus more news.

October 16, 2025

Trump’s Electrification Cuts are Short-Sighted: Report

EV infrastructure is far more valuable to the nation's prosperity and jobs market than the White House believes, according to a new report.

October 16, 2025

Wednesday’s Headlines: Another Highway Boondoggle Erased Edition

Maybe the worm has turned on these awful boondoggles? Plus other news.

October 15, 2025

Book Excerpt Special: ‘War on Cars’ Hosts Explore Life After the Automobile

...and why it's so urgent that we work for a better future.

October 15, 2025

State Pauses Billion-Dollar Route 17 Expansion in Hudson Valley

One of the biggest highway boondoggles in the state may finally die a merciful death, thanks to Gov. Hochul.

October 14, 2025

Delivery Workers Continue Push For Deactivation Protections

Delivery workers put pressure on the City Council to pass a bill that would give them "just cause" protections.

October 14, 2025
See all posts