Warnings are mounting regarding the state of America’s highway infrastructure, already struggling as essential transportation funds dwindle rapidly.
The Highway Trust Fund (HTF), which supports roads, bridges, and public transit, is projected to run out by 2028, as highlighted in a letter sent to Congress by over 100 economists and policy experts. The depletion of the HTF would result in a significant funding cut of 46%, leading to delays and freezes in transportation projects, which may then require states to shoulder financing or increase taxes for residents.
A representative for Republican Missouri Rep. Sam Graves, chair of the House Transportation and Infrastructure Committee, indicated that conventional gasoline and diesel taxes no longer suffice for keeping the fund afloat. With more vehicles becoming increasingly fuel-efficient—or in the case of electric vehicles, using zero petrol—not all users are contributing their fair share towards road maintenance.
The representative noted that while the HTF has historically relied on fees from users since its inception, this funding model is facing growing challenges. “Our transportation system is essential for national security, economic stability, and daily life,” a spokesperson for Republican North Carolina Rep. David Rauser emphasized. He also mentioned the necessity of finding new and equitable funding sources as vehicles evolve.
The Bipartisan Infrastructure Act (BIL) details the planned allocation of $383 billion, but the HTF bill is set to expire in 2026. Lawmakers are attempting to reauthorize the BIL this year, though there are hints that only a short extension might be feasible to allow Congress to address HTF issues, albeit this seems unlikely.
The letter suggests various approaches, such as implementing a “user-pay” structure where drivers contribute directly through taxes and tolls based on mileage, ensuring a fairer distribution tied to the vehicle type.
Moreover, experts are advocating for Congress to take significant steps to ensure the HTF remains stable and sustainable in the long term. In 2021, $1.2 trillion in infrastructure spending was legislated, aiming to assist in rebuilding and internet expansion, yet after five years, progress appears to have stalled, particularly in rural internet projects.
Recent evaluations of America’s infrastructure assigned roads a “D+” rating, a slight improvement from the previous “D” in 2021. Nationwide, the quality of highways, bridges, and transportation systems has deteriorated from 2008 to 2018, with noticeable declines in ride quality.
The HTF predominantly relies on gasoline taxes, which contribute around 91% of its revenue, with a current tax rate frozen since 1993. As electric vehicles gain traction, fewer drivers are contributing, complicating the fund’s viability.
There have been proposals to introduce annual fees for electric and hybrid vehicles as a means of supplementing the fund, although these suggestions did not make it into the final text of related legislation.
Concerns about foreign attacks on GPS systems—critical for navigation—were also raised, noting the potential financial loss should such systems fail. The letter called for measures to develop backup systems for GPS that comply with U.S. Department of Transportation regulations.
Experts warn that excessive regulations tend to inflate infrastructure costs, causing considerable delays as projects must align with numerous federal, state, and local mandates. One study highlighted an average delay of 11 months for metropolitan projects, cumulatively costing $5.1 million.
Jeff Davis from the Eno Center for Transportation commented that while there’s no urgent need to address the trust fund’s issues immediately, he acknowledged that it is indeed projected to deplete within a few years, warning that states may face significant funding challenges, potentially leading to shutdowns of highway departments and transit agencies.
Recently, the Congressional Budget Office reported an anticipated increase in HTF revenues due to adjustments in fuel demand projections, attempting to close the funding gap that has grown significantly in recent years.
