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

Trendingnow

1

Elon Musk on MacKenzie Scott giving away $26 billion of her fortune: 'Sadly,' it makes the world a worse place

2

MacKenzie Scott alone accounted for one-third of America's $19.2 billion in megagifts last year

3

Philanthropy leader at Warren Buffett and Bill Gates’ Giving Pledge says children of billionaires are pushing them to give their wealth away faster

1

Elon Musk on MacKenzie Scott giving away $26 billion of her fortune: 'Sadly,' it makes the world a worse place

2

MacKenzie Scott alone accounted for one-third of America's $19.2 billion in megagifts last year

3

Philanthropy leader at Warren Buffett and Bill Gates’ Giving Pledge says children of billionaires are pushing them to give their wealth away faster
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
  • Pinterest icon

Latest in Tech

Dell’s AI boom is real, but so is the profit margin hit nobody is pricing in
AIDell Technologies
Dell’s AI boom is real, but so is the profit margin hit nobody is pricing in
By Mia OsmonbekovJune 30, 2026
5 hours ago
Image of colored bar charts with one being pushed up.
NewslettersEye on AI
AI is minting billion-dollar companies faster than before
By Beatrice NolanJune 30, 2026
7 hours ago
Anthropic CEO Dario Amodei pointing to his head.
AIAnthropic
At the heart of Anthropic’s clashes with the U.S. government, a decision not to play by the new rules of Trump’s Washington
By Jeremy KahnJune 30, 2026
10 hours ago
wb
CommentaryLeadership
I grew BDO from $600 million to $3.4 billion. Here’s the 3-part formula that made it possible
By Wayne BersonJune 30, 2026
12 hours ago
vinod
CommentaryData centers
Vinod Khosla: AI’s energy crisis has a fix — and it doesn’t need the grid
By Vinod KhoslaJune 30, 2026
12 hours ago
Jamie Dimon isn’t giving up the top job. That’s turned JPMorgan into a poaching ground for CEO talent
C-SuiteNext to Lead
Jamie Dimon isn’t giving up the top job. That’s turned JPMorgan into a poaching ground for CEO talent
By Ruth UmohJune 30, 2026
12 hours ago

Most Popular

Elon Musk on MacKenzie Scott giving away $26 billion of her fortune: 'Sadly,' it makes the world a worse place
Success
Elon Musk on MacKenzie Scott giving away $26 billion of her fortune: 'Sadly,' it makes the world a worse place
By Sydney LakeJune 29, 2026
1 day ago
MacKenzie Scott alone accounted for one-third of America's $19.2 billion in megagifts last year
Success
MacKenzie Scott alone accounted for one-third of America's $19.2 billion in megagifts last year
By Sydney LakeJune 25, 2026
6 days ago
Philanthropy leader at Warren Buffett and Bill Gates’ Giving Pledge says children of billionaires are pushing them to give their wealth away faster
Success
Philanthropy leader at Warren Buffett and Bill Gates’ Giving Pledge says children of billionaires are pushing them to give their wealth away faster
By Preston ForeJune 27, 2026
4 days ago
'Humanity has chosen to become idiots': This Brown professor switched to take-home exams after a mass shooting and discovered mass cheating
AI
'Humanity has chosen to become idiots': This Brown professor switched to take-home exams after a mass shooting and discovered mass cheating
By Catherina GioinoJune 29, 2026
1 day ago
The retired college professor fighting a $313 trespassing ticket in Wisconsin thinks he's part of a national struggle
Environment
The retired college professor fighting a $313 trespassing ticket in Wisconsin thinks he's part of a national struggle
By Catherina GioinoJune 28, 2026
3 days ago
The U.S. Army is opening military bases to private billions — here's why that changes everything for the next 250 years
Commentary
The U.S. Army is opening military bases to private billions — here's why that changes everything for the next 250 years
By Marc AndersenJune 30, 2026
13 hours 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.