Highway Trust Fund

Highway Trust Fund

The Highway Trust Fund is the mechanism that was established in 1956 as the method for paying for the construction of the Interstate Highway System. Its primary source of revenue is the federal motor fuels excise tax. In 2009, for the first time in its 50 plus year history, the Highway Trust Fund has insufficient revenue to meet the funding levels established in the SAFETEA-LU authorizing legislation potentially jeopardizing the ability of the Federal government to meet its commitment to the states.
The Federal motor fuels user fee has not been increased since 1993 and the revenue generated is not sufficient to meet current inadequate authorized funding levels in fiscal year 2009. Without additional revenue the Highway Trust Fund will only be able to support future increased investment in highways, bridges and transit.

Increase Funding for Highway Trust Fund. The Highway Trust Fund is a successful funding mechanism that should be strengthened by increasing revenue to meet current and future transportation needs.
Increase the Motor Fuels Excise Tax. The motor fuels user fee remains the fairest, most efficient, and cost effective method for funding necessary transportation investment. Increase the federal motor fuels tax by 10 cents to retroactively address past inflation since the fee was last increased.
Create a Highway User Rate Commission. Commission would annually recommend the level the motor fuels user fee should be set to reflect inflation and transportation system conditions and performance.
Transfer User Fee Collection Model to Vehicle Miles Traveled. Begin the process of changing the user fee collection model to a Vehicle Miles Traveled (VMT) Tax charged to all vehicles using transportation infrastructure that is eligible for federal funds.
Ensure User Fees are Dedicated to Transportation Improvements. Maintain firewalls and funding guarantees that ensure that highway user fee revenue is used for its intended purpose: to improve transportation.

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