Business and Labor Agree: Boost the Gas Tax

At a Senate Environment and Public Works Committee meeting on Feb. 12, leaders from big labor, big business, AASHTO, and AMTRAK testified to the importance of keeping the Highway Trust Fund solvent. The first two specified increasing the gas tax.

2 minute read

February 14, 2014, 10:00 AM PST

By Irvin Dawid


"U.S. Chamber of Commerce President Tom Donohue told the Senate Environment and Public Works Committee that increasing the gas tax would be "the simplest, most straight-forward, and most effective way to generate enough revenue" to cover an estimated $20 billion per year shortfall in transportation funding," wrote Keith Laing, The Hill's veteran transportation reporter.

The Chamber leader received back up from an unlikely source on Wednesday from AFL-CIO President Richard Trumka, who told the panel, "The gas tax was last raised in 1993 when it represented 17 percent of the price of fuel; it now represents about five percent of the cost of fuel."

He agreed with Donohue in that boosting the federal gas tax, unchanged for two decades, was the way to go. Both agreed that a "user fee" approach made the most sense, as did committee chair, Sen. Barbara Boxer (D-Calif.), because of the "certainty" it provides.

Additional witnesses included Mike Hancock, president of the American Association of State Highway and Transportation Officials (AASHTO) who warned of "serious economic disruptions as early as this summer if USDOT delays reimbursements to the states for projects already completed." MAP-21, the current, two-year transportation bill expires on Sept. 31, 2014.

Hancock's testimony (PDF) suggested three options to deal with the impending insolvency of the Highway Trust Fund (HTF):

1. Provide additional General Fund transfers to the HTF in order to maintain the current level of highway and transit investment and meet prior-year obligations.

2. Provide additional receipts to the HTF by adjusting existing revenue mechanisms or implementing new sources of revenue. 

3. Virtually eliminate new federal highway and transit obligations in FY 2015.

Finally, Amtrak CEO Joseph Boardman joined in. "We need a balanced Transportation Trust Fund that can provide investment in any surface mode-- including Highway, Transit, and Rail (both passenger and freight)," he said. 
However, Laing notes that "Amtrak traditionally receives about $1 billion per year in funding from Congress, but the money is usually drawn from other places than the Highway Trust Fund."

Wednesday, February 12, 2014 in The Hill

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 4, 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

White and yellow DART light rail train in Dallas, Texas with brick building in background.

DARTSpace Platform Streamlines Dallas TOD Application Process

The Dallas transit agency hopes a shorter permitting timeline will boost transit-oriented development around rail stations.

May 28, 2025 - Mass Transit

Aerial view of large complex of apartment buildings surrounded by fall foliage trees in suburban Dallas, Texas.

Renters Now Outnumber Homeowners in Over 200 US Suburbs

High housing costs in city centers and the new-found flexibility offered by remote work are pushing more renters to suburban areas.

June 6 - Point2

Yellow single-seat Japanese electric vehicle drivign down road.

The Tiny, Adorable $7,000 Car Turning Japan Onto EVs

The single seat Mibot charges from a regular plug as quickly as an iPad, and is about half the price of an average EV.

June 6 - PC Magazine

Worker in hard hat stands in front of oil pipeline under construction with yellow heavy equipment.

Supreme Court Ruling in Pipeline Case Guts Federal Environmental Law

The decision limits the scope of a federal law that mandates extensive environmental impact reviews of energy, infrastructure, and transportation projects.

June 5 - NPR

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.