THE FEDERAL HIGHWAY TRUST FUND. A WHITE PAPER ON THE FUNDING MECHANISM THAT HELPS BUILD AND MAINTAIN AMERICA'S ROADS AND BRIDGES

The Federal Highway Trust Fund, created by the Highway Revenue Act of 1956, is a mechanism that provides revenue to help build and improve the 847,000-mile federal-aid highway system, including 43,800 miles in the Interstate highway network. Since 1956, the fund has allocated more than $205 billion to the states, which in turn financed improvements to more than 525,000 miles of roads and 18,000 bridges. These improvements have generated substantial economic benefits. For instance, each billion dollars of construction spending generates about 10,600 jobs in the construction industry and another 31,000 jobs in other sectors of the economy each year. Since 1957, the amount of traffic on America's roads has more than tripled while motor-fuel consumption has increased only one and a half times. Vehicles have become more fuel-efficient meaning that the Trust Fund receives proportionately less tax revenue than in the past for each penny of the motor-fuel tax. Any reduction in highway revenues creates new problems. Sixty-two percent of all paved roads in the country already are in "fair" to "very poor" condition and need to be resurfaced or reconstructed. Also, 42 percent of the nation's bridges (over 20 feet in length) are substandard and need to be rehabilitated or replaced. The Trust Fund has a checkbook balance of more than $11.3 billion (as of June 30, 1989), all of which has been committed to projects now under way. Since 1956, the Trust Fund has received $216.4 billion and spent $205.1 billion. Diversion of highway trust funds and exemptions add to the uncertain status of the user-fee system. The six-cent-per-gallon exemption on gasohol is costing the Trust Fund nearly $500 million each year. State exemptions add another $159 million in annual losses. A further incursion on the highway user fee system has been proposed in the form of a federal gas tax increase with revenues used to reduce the national deficit. Current proposals range up to 50 cents per gallon.

• Corporate Authors:

  Road Information Program

  1200 18th Street, NW
  Washington, DC  United States  20036
• Publication Date: 1989-8

Media Info

• Features: Figures; Tables;
• Pagination: 21 p.

Subject/Index Terms

• TRT Terms: Bridges; Construction industry; Driver rehabilitation; Economic benefits; Exemption; Expenditures; Federal aid highways; Fuel consumption; Fuels; Gasohol; Gasoline; Highway user taxation; Taxation
• Identifier Terms: Highway Trust Fund
• Uncontrolled Terms: Fund allocations; Rehabilitation
• Subject Areas: Bridges and other structures; Construction; Economics; Energy; Finance; Highways; I10: Economics and Administration;

Filing Info

• Accession Number: 00486119
• Record Type: Publication
• Files: TRIS
• Created Date: Aug 31 1989 12:00AM