Transportation Reauthorization Battles Ahead - Funding & Revenue Split

The transportation reauthorization bill will be hotly debated this fall on at least two fronts - finding a sustainable funding source and apportioning the revenues. The 18.4 cent gas tax, its funding source, declined 33% due to inflation since 1993.

2 minute read

June 8, 2009, 9:00 AM PDT

By Irvin Dawid


"The federal transportation bill could spend as much as $450 billion on road and transit projects over the next six years.

The trust fund is insolvent in large part because, for the second year in a row, Americans are driving less, and when they buy less gas, gasoline tax revenue declines. Last year the decline in purchases was attributed to record gas prices, and this year people are driving less because of the recession. At the same time, taxes collected from truck sales have fallen sharply, eroding another source of revenue.

While several business groups, transportation experts and lawmakers in both parties have called for raising the gasoline tax to meet transportation needs, the Obama administration has made it clear that it opposes raising the tax in a recession.

"The administration has inherited a system that can no longer pay for itself," Transportation Secretary Ray LaHood said Thursday at a hearing in the House, where he pledged to act this summer to address the expected shortfall. "We must think creatively as we search for sustainable funding mechanisms."

A federal commission recently recommended raising the tax by 10 cents a gallon, but said that the nation should ultimately devise a way to tax people based on how many miles they drive, not on how much gasoline they use."

As if preventing the Trust Fund from going bankrupt is not enough of a problem, groups including Transportation for America, the National Association of Realtors and AARP are calling for greater equity in apportioning the funds to transit which only receives 20% of revenues.

CQ Politics: Push for More Transit Funding Could Spark Transportation Spending Battle:

"If the bill starts looking more negative on highways, then users that have been supportive of fuel tax increases would turn their back on it," said Greg Cohen, chief executive of the American Highway Users Alliance. "There is potential that the whole bill could be slowed down here."

Thanks to Mark Boshnack

Saturday, June 6, 2009 in The New York Times - U.S.

Young Professional

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 and Environmental 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 and Environmental Planner

Get top-rated, practical training for planners

"Planetizen federal action tracker" logo superimposed over black and white image of US Capitol dome.

Planetizen Federal Action Tracker

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

September 16, 2026 - Zachary Whalen

Overlapping highways

The state-sanctioned urbicide of Austin

People don’t kill cities. Freeways do.

September 8, 2026 - Benjamin Schneider

The Hoover Dam blocking the Colorado River. The river's water level is noticeably low. The cliffs surrounding the blue water are brown and jagged.

US to reduce Colorado River water deliveries to Mexico

A new Colorado Treaty amendment reduces Mexico’s Colorado River water allocation by 250,000 acre feet.

September 11, 2026 - The Arizona Republic

A cluster of wind turbines beneath a stormy sky, above a forest where the leaves are beginning to change colors.

5 New England states march closer to 800 megawatt wind energy project

Securing federal approval for the project may be complicated under the Trump administration, which has historically been hostile towards domestic wind power.

September 16 - Inside Climate News

People boarding a bus on Maryland's Orange Route.

Baltimore to break ground on $50 million Transit Priority Project

The project will bring faster bus trips, safer streets and better bike connections to Baltimore.

September 16 - Mass Transit

A brick building with a circular sign with the Airbnb logo hanging off of it.

Airbnb launches $250 million 'last-dollar financing' housing accelerator, makes first investment in Austin

The company will put $6.4 million towards affordable housing development in Texas’ capital.

September 16 - Smart Cities Dive

FREE Course: Walkable City 1: Why Walkability?

After describing his path towards focusing on walkability as the essence of good planning, Jeff Speck marches through his five principal reasons for making more walkable places.

Reinventing Malls: Planning Alchemy—Turning Gray Fields Into Gold

The course focuses on the opportunities and imperatives that shape reinvention of mall sites.