In its first analysis of the Highway Trust Fund, following passage of the long-term highway & transit bill known as the FAST Act, the Congressional Budget Office reports that in fiscal year 2021 (the last year of the act’s authorization) the trust fund balance will be zero and that the government will need $113 billion in additional revenue to maintain funding for the ensuing six years. This analysis vividly demonstrates the challenges facing federal surface transportation programs in the future.
The FAST Act provided a transfer of $70 billion from the general fund to support the authorized funding levels in the Act. As those funds are spent over the next six years, there is insufficient revenue flowing into the trust fund accounts to maintain level funding. The report also projects that gas tax revenue will decline in the future, presumably because of more fuel efficiency and alternatively-fueled vehicles. The report does project an increase in revenue from diesel fuel taxes as trucking operations are projected to grow.
Rep. Kevin Brady (R-Texas), chair of the House Ways and Means Committee, will address the AGC Highway & Transportation Division at the 97th Annual AGC Convention to discuss his ideas for fixing the pending trust fund shortfall. This meeting will take place on March 11 in San Antonio, Texas. Register for the AGC Convention at meetings.agc.org/convention.
For more information, please contact Brian Deery at deeryb@agc.org or (703) 837-5319.