What Are (Realistic) Options For Federal Transportation Funding?

With the unlikely possibility of the Congressional conference committee agreeing to a new transportation bill, much less an agreement to address the decreasing gas tax revenues to the Highway Trust Fund, Kathryn Wolfe looks at the remaining options.

2 minute read

May 16, 2012, 10:00 AM PDT

By Irvin Dawid


Wolfe reviews President Obama's and Congress' inability to address the nation's infrastructure crisis, specifically to fund the investments necessary. Noting that the funding problems are hardly new, she notes that "the last transportation bill (SAFETEA-LU), enacted in 2005, ordered up a blue-ribbon commission tasked with studying the financing problem and making recommendations for how to fix it."

Wolfe points to the Senate's current transportation bill, noting that it fails to provide the amount of funding ($225 billion annually) nor the annual increases in the gas tax of 5 to 8 cents for 5 years that the National Surface Transportation Policy and Revenue Study Commission recommended.

Instead, Congress and Obama continue SAFETEA-LU's approach to transportation funding of kicking the can down the road instead of fixing it, as Obama might have done early on. "Obama's first substantive policy decision related to the transportation bill after taking office was to push for an 18-month extension instead of getting behind then-House Transportation and Infrastructure Committee Chairman Jim Oberstar's bill." Wolfe sees "little reason to think that a viable long-term financing solution is achievable in 15 months or less".

What choices are available to address the financing shortfall? Forget about about raising the gas tax, and a vehicle-miles-traveled fee is not realistic in the short term.

"The default option may end up being an increasing expansion of tolling on interstates or greater construction of toll roads. Or Congress may decide to simply make transportation spending all discretionary instead of the current special class of spending it now enjoys, making it subject to the vagaries of the annual appropriations cycle.

That's an option the transportation lobby really doesn't want to contemplate - but it's a real one nonetheless."

Thanks to Eugene Wilson

Sunday, May 13, 2012 in Politico

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Cover CM Credits, Earn Certificates, Push Your Career Forward

Aerial view of town of Wailuku in Maui, Hawaii with mountains in background against cloudy sunset sky.

Maui's Vacation Rental Debate Turns Ugly

Verbal attacks, misinformation campaigns and fistfights plague a high-stakes debate to convert thousands of vacation rentals into long-term housing.

July 1, 2025 - Honolulu Civil Beat

Logo for Planetizen Federal Action Tracker with black and white image of U.S. Capitol with water ripple overlay.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

July 9, 2025 - Diana Ionescu

Map of Haussmann's redesign of Paris in the 1850s through 1870s under Napoleon III.

In Urban Planning, AI Prompting Could be the New Design Thinking

Creativity has long been key to great urban design. What if we see AI as our new creative partner?

June 30, 2025 - Tom Sanchez

View of dense apartment buildings on Seattle waterfront with high-rise buildings in background.

King County Supportive Housing Program Offers Hope for Unhoused Residents

The county is taking a ‘Housing First’ approach that prioritizes getting people into housing, then offering wraparound supportive services.

1 hour ago - Real Change

Aerial view of suburban housing near Las Vegas, Nevada.

Researchers Use AI to Get Clearer Picture of US Housing

Analysts are using artificial intelligence to supercharge their research by allowing them to comb through data faster. Though these AI tools can be error prone, they save time and housing researchers are optimistic about the future.

2 hours ago - Shelterforce Magazine

Green bike share bikes parked in a row on a commercial street with outdoor dining and greenery.

Making Shared Micromobility More Inclusive

Cities and shared mobility system operators can do more to include people with disabilities in planning and operations, per a new report.

3 hours ago - Cities Today

Urban Design for Planners 1: Software Tools

This six-course series explores essential urban design concepts using open source software and equips planners with the tools they need to participate fully in the urban design process.

Planning for Universal Design

Learn the tools for implementing Universal Design in planning regulations.

Home and Land Services Coordinator

Appalachian Highlands Housing Partners

Associate/Senior Planner

Gallatin County Department of Planning & Community Development

Senior Planner

Heyer Gruel & Associates PA