Highway Trust Fund And Federal And Highway Financing Program

Considers H.R. 7939 and related bills, to raise revenue for Highway Trust Fund to finance Federal interstate highway program. Includes proposals to increase Federal taxes on gasoline, and to transfer Federal automotive excise tax revenues into the Highway Trust Fund.

The federal government provides about $20 billion a year in grants to states for highways; most of the money is raised through taxes on motor fuels. States, in financing their road-building programs, also rely heavily on motor fuel taxes and on fees paid by highway users. But these revenues are insufficient. This study reviews several approaches to augment traditional sources of funding for highways. The analysis covers changes in rules governing federal aid, state infrastructure banks, federal credit assistance, and private-sector financing of roads. Charts and tables.

This report has been written to incorporate the changes in the financing procedures brought about by the 1978 Surface Transportation Assistance Act. The report follows the financial process from inception in an authorization act to payment from the Highway Trust Fund, and includes discussion of the congressional and Federal agency actions which occur throughout.