LaHood Calls For 10-cent Gas Tax Increase with Indexing

Freed from the political constraints of holding a cabinet position, former Secretary of Transportation Ray LaHood told a university audience that the increase is necessary to meet multi-modal infrastructure needs, not just road construction.

3 minute read

October 24, 2013, 6:00 AM PDT

By Irvin Dawid


LaHood, one of the few Republican members of President Obama's cabinet, served as Transportation Secretary from 2009 until he was replaced by Charlotte, N.C. Mayor Anthony Foxx last July.

Initially some questioned his credentials to serve as overseer of the nation's transportation infrastructure, but he soon convinced many of his doubters that he was up to the job, taking on such unconventional causes as bicycling, high speed rail, and warning of the dangers of distracted driving. In fact, Streetsblog Capitol Hill's Tanya Snyder argued here that "Obama's top transportation achievement (was) his decision to name Ray LaHood as U.S. DOT secretary".

However, President Obama prevented LaHood from speaking on the need to increase the gasoline tax or consider vehicle-miles-traveled fees as noted here and here in March and February of 2009. No longer.

At a forum on next generation transportation systems held at George Mason University's Arlington campus on Oct. 16, LaHood did not hold back, to the delight of the audience, captured by WAMU's Martin Di Caro.

He called on lawmakers to raise the federal gas tax — last increased in 1993 to $.18 per gallon...In addition to the gas tax, LaHood said the federal and state governments should consider VMT taxes, public private partnerships, and tolling to raise transportation funds.

That was the first part of his message to the "businessmen, smart growth advocates, and transportation planners" and students in attendance. The second part lived-up to his legacy as a reformer at DOT. Laying pavement is no longer enough. Instead, a multi-modal approach must be advanced.

The U.S. Department of Transportation's priorities have been building and repairing roads and bridges, LaHood said, but the federal government must now come up with money to help states, cities, and towns build high-speed rail lines, streetcar systems, and even bike sharing programs.

"So the debate now is how do we pay for all the things we need in infrastructure? How do we help these communities like Arlington County and other areas of the country that want walking and biking paths, that want Safe Routes to School, that want the opportunity for bus rapid transit, that want a streetcar line, that want high-speed rail?" LaHood said.

His recommendation: "The highway trust fund has been a good source of funding. It can't be the only source of funding. I believe Congress ought to raise the gas tax ten cents a gallon and index it. If the gas tax had been indexed in 1993 we wouldn't be having this debate," LaHood said.

Following in the recent footsteps of Senator Barbara Boxer (D-Calif), chair of the Senate's Environment and Public Works Committee, and Congress, he viewed Virginia's new transportation funding law as a model to consider.

LaHood said Virginia, recognizing the diminishing rate of return of its state fuel tax, thought "outside the box" in raising its sales tax instead to fund transportation.

On Monday, Oct. 21, Thomas J. Donahue, president of the U.S. Chamber of Commerce, repeated LaHood's recommendation to raise the gas tax to address America's failing transportation infrastructure. 

"It's one of the few economic policy ideas that big business groups and big labor unions agree on, wrote CNN's Jennifer Liberto, notwithstanding the fact that "(a) higher gasoline tax would be extremely unpopular in a country where almost 90% people drive to work."

Unlike LaHood, Donahue did not stress a multi-modal approach toward transportation spending. Donahue might also not have endorsed Virginia's replacement of the gas excise tax with a general sales tax, as LaHood did, considering that last January he declared that "gasoline excise taxes are not taxes but user fees".

Wednesday, October 16, 2013 in WAMU

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

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.

June 11, 2025 - Diana Ionescu

Metrorail train pulling into newly opened subterranean station in Washington, D.C. with crowd on platform taking photos.

Congressman Proposes Bill to Rename DC Metro “Trump Train”

The Make Autorail Great Again Act would withhold federal funding to the system until the Washington Metropolitan Area Transit Authority (WMATA), rebrands as the Washington Metropolitan Authority for Greater Access (WMAGA).

June 2, 2025 - The Hill

Large crowd on street in San Francisco, California during Oktoberfest festival.

The Simple Legislative Tool Transforming Vacant Downtowns

In California, Michigan and Georgia, an easy win is bringing dollars — and delight — back to city centers.

June 2, 2025 - Robbie Silver

Color-coded map of labor & delivery departments and losses in United States.

The States Losing Rural Delivery Rooms at an Alarming Pace

In some states, as few as 9% of rural hospitals still deliver babies. As a result, rising pre-term births, no adequate pre-term care and harrowing close calls are a growing reality.

5 hours ago - Maine Morning Star

Street scene in Kathmandu, Nepal with yellow minibuses and other traffic.

The Small South Asian Republic Going all in on EVs

Thanks to one simple policy change less than five years ago, 65% of new cars in this Himalayan country are now electric.

7 hours ago - Fast Company

Bike lane in Washington D.C. protected by low concrete barriers.

DC Backpedals on Bike Lane Protection, Swaps Barriers for Paint

Citing aesthetic concerns, the city is removing the concrete barriers and flexposts that once separated Arizona Avenue cyclists from motor vehicles.

June 15 - The Washington Post