Is Indexing the Key to Fixing the Federal Gas Tax?

It's not too early to think about "fixing the Highway Trust Fund", a prerequisite to renewing MAP-21 transportation legislation that expires Sept. 30, 2014. Rep. Peter DeFazio may have the fix in the form of an indexed gas tax - but which index?

2 minute read

April 4, 2013, 10:00 AM PDT

By Irvin Dawid


It hasn't even been a year since Congress passed the Moving Ahead for Progress in the 21st Century (MAP-21) transportation reauthorization legislation. But because it only covered a little more than two years, Congress needs to begin work now on the next surface transportation reauthorization bill to keep roads and transit funded, writes Caroline Macheska, Manager of Federal Government Relations for the American Society of Civil Engineers (ASCE). The challenge is to find funding to supplement the current 18.4-cent gas tax.

Haven't we been here before? Increasing the gas tax and/or implementing a vehicle-miles-traveled fee mechanism have been discussed here countless times.

One of the more recent proposals comes from Peter DeFazio (D-OR), the Ranking Member of the Highways and Transit subcommittee of the House Transportation and Infrastructure Committee and he does touch upon the federal gas tax.

Fazio's proposal calls for "indexing the current 18.4 cents-per-gallon tax to inflation in construction costs and to increases in auto fuel efficiency standards." Indexing it to the Transportation’s National Highway Cost Construction Index would produce an additional $150 billion over ten years, three times the revenue of tying it to the consumer price index (CPI), according to Defazio's office, Macheska writes. Furthermore, the indexed gas tax could be the basis for "$100 billion in bonds that would be paid off in 10 years."

So far, reactions from President Obama and Chairman of the full Transportation and Infrastructure Committee, Bill Shuster (R-PA) have been promising.

If history is to repeat itself, MAP-21 will be extended, and extended,.....just as its predecessor, SAFETEA-LU was nine times over three years. However, if funding is to be continued at the levels specified in MAP-21, additional sources to the gas tax will need to be identified which no longer pays for all Highway Trust Fund expenditures. Then again, there's always the federal General Fund.

Wednesday, March 27, 2013 in American Society Of Civil Engineers

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

Red and white "Wildfire Evacuation Route" sign on signpost.

Cal Fire Chatbot Fails to Answer Basic Questions

An AI chatbot designed to provide information about wildfires can’t answer questions about evacuation orders, among other problems.

7 hours ago - The Markup

Protester at Echo Park Lake, Los Angeles holding sign that says "Housing is a human right"

What Happens if Trump Kills Section 8?

The Trump admin aims to slash federal rental aid by nearly half and shift distribution to states. Experts warn this could spike homelessness and destabilize communities nationwide.

July 10 - Shelterforce Magazine

Aerial of rainbow painted crosswalks at large intersection in Castro District, Sna Francisco, California.

Sean Duffy Targets Rainbow Crosswalks in Road Safety Efforts

Despite evidence that colorful crosswalks actually improve intersection safety — and the lack of almost any crosswalks at all on the nation’s most dangerous arterial roads — U.S. Transportation Secretary Duffy is calling on states to remove them.

July 10 - Streetsblog USA

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