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

Get top-rated, practical training

Close-up of "Apartment for rent" sign in red text on black background in front of blurred building

Trump Administration Could Effectively End Housing Voucher Program

Federal officials are eyeing major cuts to the Section 8 program that helps millions of low-income households pay rent.

April 21, 2025 - Housing Wire

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.

April 30, 2025 - Diana Ionescu

Ken Jennings stands in front of Snohomish County Community Transit bus.

Ken Jennings Launches Transit Web Series

The Jeopardy champ wants you to ride public transit.

April 20, 2025 - Streetsblog USA

Close-up of white panel at top of school bus with "100% electric" black text.

Driving Equity and Clean Air: California Invests in Greener School Transportation

California has awarded $500 million to fund 1,000 zero-emission school buses and chargers for educational agencies as part of its effort to reduce pollution, improve student health, and accelerate the transition to clean transportation.

5 hours ago - California Air Resources Board

Aerial view of Freeway Park cap park over I-5 interstate freeway in Seattle, Washington at night.

Congress Moves to End Reconnecting Communities and Related Grants

The House Transportation and Infrastructure Committee moved to rescind funding for the Neighborhood Equity and Access program, which funds highway removals, freeway caps, transit projects, pedestrian infrastructure, and more.

6 hours ago - Streetsblog USA

"No Thru Traffic - Open Streets Restaurants" sign in New York City during Covid-19 pandemic.

From Throughway to Public Space: Taking Back the American Street

How the Covid-19 pandemic taught us new ways to reclaim city streets from cars.

7 hours ago - Next City