Four Options to Keep the Highway Trust Fund Solvent

MAP-21 expires on September 30, 2014. The following year, the Highway Trust Fund will be insolvent according to the CBO. Alternatives involve user fees paid by motorists: the gas tax and VMT fee, and two others that bear no connection to driving.

2 minute read

June 11, 2013, 8:00 AM PDT

By Irvin Dawid


Adam Snider lists the pros and cons of "the most talked-about" options that legislators will consider to pay for the reauthorization or extension of MAP-21. In addition to fiscal urgency, Snider notes that funding the Highway Trust Fund "has gained extra attention with last month’s collapse of an Interstate 5 bridge in Washington state (and) the Metro-North rail crash in Connecticut."

  1. Raising the fuel excise (per gallon) tax - or following the current trend of moving toward a "percentage tax on wholesale gas prices".
  2. Vehicle-miles-traveled (VMT) fee.
  3. Tap oil and natural gas drilling royalties (proposed by Speaker John Boehner in Nov. 2011 and President Obama last March, though for different purposes).
  4. More transfers from the general fund.

Of the four options, only one has been implemented consistently in recent years.

Transferring money from the general fund to the Highway Trust Fund (HTF) has been the routine over the past few years. It’s how the (three) years of (nine) extensions leading up to MAP-21 were paid for and also offered part of the funding source for last year’s bill. And technically, general fund transfers don’t need an offset.

(S)ince 2008, Congress has shifted $41 billion from the general fund, with another $12.6 billion already authorized for 2014.

Perhaps it's only when all four options are considered that the 'pros' of raising the gas tax stand out as the most practical means to keep the HTF solvent, notwithstanding "a recent Gallup poll (that) found that two-thirds of drivers oppose a gas tax hike, even if the money goes to roads."

  • It "can’t be slapped with the fatal “new tax” label — it’s been around for more than 50 years.
  • It’s also one of the cheapest taxes to collect, offers little room for fraud and has a proven collection mechanism. Most gas stations would need only a few keystrokes to update their per-gallon price to reflect the increased tax.
  • And a strong coalition supports hiking the tax, including some unlikely allies like labor groups and the U.S. Chamber of Commerce. The Chamber rarely supports tax hikes, a point supporters hope to hammer home over the next year.

Another gas tax increase variant would be to index the excise tax as proposed by Rep. Peter DeFazio (D-OR).

Thursday, June 6, 2013 in Politico Pro

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

Green vintage Chicago streetcar from the 1940s parked at the Illinois Railroad Museum in 1988.

Chicago’s Ghost Rails

Just beneath the surface of the modern city lie the remnants of its expansive early 20th-century streetcar system.

July 13, 2025 - WTTV

Bend, Oregon

Bend, Oregon Zoning Reforms Prioritize Small-Scale Housing

The city altered its zoning code to allow multi-family housing and eliminated parking mandates citywide.

3 hours ago - Strong Towns

Blue and silver Amtrak train with vibrant green and yellow foliage in background.

Amtrak Cutting Jobs, Funding to High-Speed Rail

The agency plans to cut 10 percent of its workforce and has confirmed it will not fund new high-speed rail projects.

4 hours ago - Smart Cities Dive

Green Skid Row mural satirizing city limit sign in downtown Los Angeles, California.

LA Denies Basic Services to Unhoused Residents

The city has repeatedly failed to respond to requests for trash pickup at encampment sites, and eliminated a program that provided mobile showers and toilets.

5 hours ago - Los Angeles Public Press