• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

Mark Cuban says he has the solution to growing income inequality, and it's to reward every employee—from CEO to janitor—with company stock

2

‘I want to die broke’: Billionaire philanthropist Denny Sanford dies after giving away $4 billion

3

'Dr. Doom' Nouriel Roubini says we're headed for universal basic income or 'some form of socialism' as AI revolutionizes work—He calls that optimistic

1

Mark Cuban says he has the solution to growing income inequality, and it's to reward every employee—from CEO to janitor—with company stock

2

‘I want to die broke’: Billionaire philanthropist Denny Sanford dies after giving away $4 billion

3

'Dr. Doom' Nouriel Roubini says we're headed for universal basic income or 'some form of socialism' as AI revolutionizes work—He calls that optimistic
Techhighway trust fund

Highway funding is running out of road—again

By
David Z. Morris
David Z. Morris
Down Arrow Button Icon
By
David Z. Morris
David Z. Morris
Down Arrow Button Icon
July 10, 2015, 2:13 PM ET
Heavy traffic at rush hour on the Interstate 10 Freeway in Los Angeles, California
Photograph by Jonathan Alcorn — Bloomberg via Getty Images
Add Fortune on Google for similar content.

Without a cash injection, the Federal Highway Trust Fund will be insolvent within weeks, and would cut support for state and local highway and transit projects. Congress and the President are wrangling over how to provide supplemental funding.

If that sounds familiar, it’s because they did the same thing two months ago. And every few months since 2009. And made similar stopgap moves as far back as 1997.

The Highway Trust Fund provides about 25% of all transit and highway financing nationwide. James Burnley, Secretary of Transportation from 1987 to 1989 and now a D.C. transportation lawyer, says that recent short-term funding “creates inefficiencies, and requires the states to do additional planning and scrounging around for resources.”

How did highway funding become such a mess? Culprits include legislative intransigence, economic stagnation, and advancing automobile technology.

From its creation in 1956 until 2008, the Highway Trust Fund was a self-contained program, funded by taxes on tires, commercial vehicles, and most of all, gasoline. The federal gas tax (which itself stretches back to 1932) has been raised a handful of times, including by 5 cents per gallon under Ronald Reagan in 1982, and 4.3 cents per gallon under Bill Clinton in 1993.

Burnley remembers the era as a smooth ride: “We had not only sufficient revenues to cover the programs for highway and transit aid, but with economic growth . . . we had reasonable growth on the revenue side.”

As anti-tax hardliners like Grover Norquist gained influence through the 1990s, the gas tax became a target. In 1996, presidential candidate Bob Dole blasted the 1993 increase as the “largest tax increase in the history of the world.” In 2000, Republicans sponsored a bill to repeal it.

As much as anti-tax dogma, though, opponents in the 1990s objected to shifts in the purpose of the tax. President Reagan had characterized the gas tax as a “user fee” for highways in 1982, but starting in the early 1990s, funds were partly diverted to deficit reduction. There has also been opposition to the portion of the gas tax—still around 20%—that goes to mass transit and other non-highway projects. That bargain was initially struck to balance rural and urban interests.

The Taxpayer Relief Act of 1997 returned the deficit-reduction portion of the gas tax to the Highway Trust Fund. That bought some time in the battle with inflation—between 1993 and 2008 the fund lost about 1/3 of its buying power.

But the financial crisis and ensuing recession delivered the knockout blow, leading to a large dip in driving and gas tax revenue. The fund got a $35 billion prop as part of the broader stimulus package, but the unsteady recovery has kept driving below 2007 levels.

Meanwhile, yet another headwind has emerged—fuel efficiency regulations. In 2012, the Obama administration mandated a near doubling of national fuel efficiency by 2025, which, while positive for the environment, will amount to a huge cut in gas tax revenues.

In the short term, Ways and Means Committee chairman Paul Ryan (R-WI) has endorsed using temporary funds from corporate tax reform to yet again patch the Highway Trust Fund. It’s characteristic of the various accounting tricks and found money that have propped up the fund for nearly seven years. Frustration with the new normal has gotten bad enough that the President is dropping hints that he’d veto another short-term patch.

But we’re unlikely to get a long-term solution by the end of July, or even by the end of the year. The trucking industry supports a gas-tax hike, but nearly nobody else does, including President Obama.

Burnley says the only viable alternative is a true user fee based on miles driven. Such a system would more fairly assess fees for drivers of hybrid and electric cars, who now contribute little or nothing to highway maintenance. Oregon launched just such a program this month, but implementing it at the national level would take considerable time and investment.

Subscribe to Data Sheet, Fortune’s daily newsletter on the business of technology.

About the Author
By David Z. Morris
See full bioRight Arrow Button Icon
Add Fortune on Google for similar content.

Latest in Tech

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • TikTok icon
  • YouTube icon

Latest in Tech

kalshi
CryptoKalshi
Kalshi’s ‘chronically online’ war room figured out World Cup virality — and realized AI might be bringing back the monoculture
By Nick LichtenbergJuly 21, 2026
2 hours ago
fl
North AmericaElections
Trump-backed hopeful to succeed DeSantis unveils plan to protect local water, electricity from data centers
By Matt Brown and The Associated PressJuly 21, 2026
3 hours ago
Bolt CEO Ryan Breslow
CommentaryHuman resources
The CEO who fired HR was right. About the wrong thing.
By KeyAnna SchmiedlJuly 21, 2026
3 hours ago
‘We all failed’: Former Disney CEO Michael Eisner on Hollywood, video games and the big question of IP
Arts & EntertainmentDisney
‘We all failed’: Former Disney CEO Michael Eisner on Hollywood, video games and the big question of IP
By Joshua HongJuly 21, 2026
3 hours ago
Jersey Mike's Subs restaurant.
C-SuiteCFO Daily
Jersey Mike’s tests how far investors will stretch on restaurant IPO valuations
By Sheryl EstradaJuly 21, 2026
3 hours ago
all five founders of SkyPilot pose for a photo
Startups & VentureTerm Sheet
SkyPilot, from Databricks’ cofounder, raises $20M to be the Switzerland of AI compute
By Lily Mae LazarusJuly 21, 2026
4 hours ago

Most Popular

Mark Cuban says he has the solution to growing income inequality, and it's to reward every employee—from CEO to janitor—with company stock
Success
Mark Cuban says he has the solution to growing income inequality, and it's to reward every employee—from CEO to janitor—with company stock
By Sasha RogelbergJuly 20, 2026
21 hours ago
‘I want to die broke’: Billionaire philanthropist Denny Sanford dies after giving away $4 billion
Success
‘I want to die broke’: Billionaire philanthropist Denny Sanford dies after giving away $4 billion
By Sydney LakeJuly 20, 2026
1 day ago
'Dr. Doom' Nouriel Roubini says we're headed for universal basic income or 'some form of socialism' as AI revolutionizes work—He calls that optimistic
AI
'Dr. Doom' Nouriel Roubini says we're headed for universal basic income or 'some form of socialism' as AI revolutionizes work—He calls that optimistic
By Jason MaJuly 18, 2026
3 days ago
Current price of silver as of Monday, July 20, 2026
Personal Finance
Current price of silver as of Monday, July 20, 2026
By Joseph HostetlerJuly 20, 2026
1 day ago
It’s not just Taco Bell lettuce and possible glass in Pillsbury rolls: Food and drink recall events reached a 6-year year-over-year high
Retail
It’s not just Taco Bell lettuce and possible glass in Pillsbury rolls: Food and drink recall events reached a 6-year year-over-year high
By Sasha RogelbergJuly 20, 2026
1 day ago
Current price of oil as of July 20, 2026
Personal Finance
Current price of oil as of July 20, 2026
By Joseph HostetlerJuly 20, 2026
1 day ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.