The U.S. Department of Transportation estimates that the Highway Trust Fund “Will encounter a shortfall before the end of fiscal 2014.” That’s certainly bad news for America’s crumbling roads, and wholly unnecessary.
It’s certainly not due to an overall lack of federal revenue. According to the Congressional Budget Office, (CBO) federal revenues are expected to grow by about 9 percent this year, to $3.0 trillion. Taxes going directly into the Highway Trust Fund are substantial. Where is the money going?
Stimulus money that could have remedied many deficiencies was instead routed to failed “green” projects like Solyndra, mass transit, tourist enterprises, and political allies of the White House. According to an Economist report, “a relatively small share of the bill was actually devoted to infrastructure. Just $64 billion, or 8% of the total, went to roads, public transport, rail, bridges, aviation and wastewater systems…”
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According to a CATO Institute study “more than 20 percent of federal gas taxes [which are supposed to go to highways] are spent on transit, and there is no guarantee that the remaining 80 percent goes for highways, as Congress often diverts some of that money to such things as bike paths, national park visitor centers, museums, and other local pork barrel projects.” The study also notes that “federal subsidies to [mass] transit are about 80 times as great, per passenger mile, as federal subsidies to highways.”
America’s roads and bridges are in urgent need of repair. The time has come to stop politicizing the use of the Highway Trust funds and apply its dollars appropriately.