Offsetting: A Third Strategy to Fund Federal Transportation Spending

"What program would you cut to continue the same level of transportation spending without raising the gas tax, e.g. cancer treatment programs, Head Start?," asks Streetsblog USA's Tanya Snyder after reading Sen. Bob Corker's (R-Tenn.) recommendation.

2 minute read

May 29, 2014, 7:00 AM PDT

By Irvin Dawid


Sen. Bob Corker, who sits on the powerful Banking, Housing, and Urban Affairs, one of three committees responsible for measures to be included in the MAP-21 Reauthorization Act, sent a letter [PDF] on May 14 to the heads of the other two Senate committees: Environment and Public Works Committee and the Finance Committee, which at first glance might seem that he advocated increasing the federal gas tax to provide the necessary funds to fill the Highway Trust Fund shortfall, the difference between spending and gas tax receipts. 

In the last few years, Congress has allowed the [Highway Trust Fund] to become one of the largest budget gimmicks in the federal government. Spending from the HTF has far outpaced [gas tax] revenues in recent years, taking us away from our traditional user fee, pay-as-you-go transportation financing model. Instead of enacting a permanent solution to this problem, we have transferred more than $50 billion of general fund money [$54 billion according to this NPR report] to maintain funding levels.

Corker's press release, which includes his letter, is even more direct, calling for "reestablishing (the) self-sustaining highway program" in the title.

He gets it! If you stopped reading there, you'd be very pleased that a senator is saying what we all know, that the "permanent solution", at least for this go-around of the transportation reauthorization act, is to bring the trust fund into solvency sticking to the "traditional user fee, pay-as-you-go transportation financing model."

Snyder takes it from here:

Then he lays out two options for solving the problem: “(1) increasing dedicated HTF user fees to match spending levels, or (2) reducing HTF spending to match dedicated HTF revenues.” He quickly dispenses with the first: “It is my belief that reducing spending to current HTF revenue levels would be damaging to our nation’s infrastructure, competitiveness, and economic growth.” Good show, Senator! So that leaves us with increasing the user fee, correct?

Not so fast. “Another alternative that would at least make Congress accountable for the increased spending is to offset HTF spending that exceeds revenues by reducing other government spending by an equal amount,” he wrote.

The "third strategy", off-setting the general fund transfers [see his press release], does nothing to restore the user-pay system that the Highway Trust Fund is based on. Snyder suggests that the Corker strategy would result in "lawmakers end(ing) up cutting cancer treatment programs and Head Start and meals on wheels. All to make sure drivers don’t have to pay their own way."

Seems like another gimmick to me.

Tuesday, May 20, 2014 in Streetsblog USA

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.

April 30 - 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.

April 30 - 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.

April 30 - Next City