CAP en Español
Small CAP Banner

Repatriation Tax Holiday Is Not a Fix for Highway Trust Fund Insolvency

  • print icon
  • SHARE:
  • Facebook icon
  • Twitter icon
  • Share on Google+
  • Email icon

All over the United States, construction crews are shaking off the winter cold and gearing up for a busy season repairing and expanding our transportation infrastructure. Yet, one ominous question remains: Will the Highway Trust Fund have enough money to keep them on the job?

The most recent estimates by the U.S. Department of Transportation show the trust fund running short before the end of the fiscal year. Moreover, as cash balances dwindle, the department will begin holding reimbursement payments to states. When the dollars run out, pink slips will soon follow — an unnecessary bit of self-inflicted economic pain.

The Highway Trust Fund faces major structural deficits stemming from dramatic improvements in vehicle fuel efficiency. As cars consume less gas, they also pay less in federal gas taxes, which are the main revenue source for the Highway Trust Fund. Meanwhile, federal gas tax rates have remained constant since 1993. By model year 2025, fuel economy will nearly double to 54.5 miles per gallon, meaning the current gas tax will be even less adequate. Congress needs to provide stable, long-term revenue for the trust fund.

Read more here.

This article was originally published in Roll Call.

To speak with our experts on this topic, please contact:

Print: Allison Preiss (economy, education, poverty)
202.478.6331 or

Print: Tom Caiazza (foreign policy, health care, energy and environment, LGBT issues, gun-violence prevention)
202.481.7141 or

Print: Elise Shulman (Oceans)
202.796.9705 or

Print: Chelsea Kiene (women's issues, Legal Progress, Half in Ten Education Fund)
202.478.5328 or

Print: Tanya Arditi (Immigration, Progress 2050, race issues, demographics)
202.741.6258 or

Spanish-language and ethnic media: Jennifer Molina
202.796.9706 or

TV: Rachel Rosen
202.483.2675 or

Radio: Chelsea Kiene
202.478.5328 or