A radical new bill has been proposed in Congress that would see the burden of highway funding taken away from the federal government and instead managed on the State level.
Representative Ron DeSantis and Senator Mike Lee have filed the Transportation Empowerment Act which – in their own words – would work “by cutting out the bureaucratic middle man in Washington.”
The bill would lower the national gas tax from 18.4 cents per gallon to only 3.7 cents per gallon over the next five years, and would leave it up to the states how to make up for that lost money.
“States will be able to keep more of their infrastructure dollars at home where they belong and they will be able to avoid the costly and often duplicative federal regulations that can bring any infrastructure project to a screeching halt,” said Lee.
The argument seems to be that States are able to govern more efficiently than the national government, but that may not be the whole issue. As we’ve recently seen with Rhode Island’s attempt to implement a truck-only tax, individual states don’t always find the best solutions for their funding woes.
Additionally, it seems the goal of the bill would be to help fund “systems that result in less traffic, shorter commutes, access to more affordable homes, and will help families better manage the work-life balance.” That all sounds great, but opponents of the bill are worried that a focus on local roads will mean maintaining the highways will be a lower priority.
The ATA for example spoke out against the bill saying that it was an “abandonment by Congress of its constitutional obligation to promote interstate commerce,” and that it would “prove disastrous to state and local governments’ ability to maintain and improve their transportation systems.”
Next Story: Rhode Island Rolls Over On Truck Only Toll
Source: truckinginfo
Image Source: rstreet
Clifford says
About time! Though I have little hope that it will make it thru any legislation. It has always been stupid to take money away from the citizens of the state, send it to Washington DC, and then have it only trickle back in segments based on following some mandate or guideline set forth by bureaucrats. When it does come back it has so many strings attached the states are nothing more than marionettes dancing as the different strings are being pulled. Meanwhile, nothing really gets fixed, as most of the money gets lost in the black hole of government.
Anne says
Don’t be so quick to think that lower tax means lower fuel cost and that this will be a good thing. This is terrible for my industry, which is dump trucks, since most of our money comes from the Highway Trust Fund and filters through the projects and contractors until it reaches the small subcontractors and owner operators. As if it isn’t bad enough that they haven’t raised the tax since 1993 and they’re usually out of money a couple months into the season, now they’re going to dump us off altogether? Really? And it’ll hurt other industries as well – the flatbed carriers that bring us the materials, other vocational trucks that operate on the construction sites. We’re talking about billions lost, and it’s going to hit the small operators first, then you’re going to have states where the gas is high and states where the roads are falling apart. This is not a good thing. The point of centralized infrastructure for the interstates is for consistency.
mike says
I read your post, I see your point. Your correct but it also will have benifits and draw backs . The available money will greatly increase in states. The only issue I foresee as a issue is how corrupt that state transportation department is.
guy says
That’s all well and good, but some states are broke and poorly run into the ground by crazy governing. no money for anything let alone transportation.
Joe says
To Dump Truck Anne-
The current system is extremely flawed and your industry segment is only getting a small portion of what it should be getting.
The constitutional arrangement was that the states manage their business activities in a way that makes that state be successful and was never intended to be designed like it is now where states send the money to the Feds and then only a small portion trickles back home (to your dump truck biz).
Federal funding is greatly out of control and only going to get worse until the whole thing collapses… this is what they want so they can institute the Central Bank (which is 100% not allowed by the Constitution).
You will be better off having the State pay you more directly than what you have now.
JR
Comptroller
Tim says
In my opinion this doesn’t go far enough. I say let’s give states full sovereignty and rename it the S.A.
Chris Hoppman says
The one area that I will usually agree with the ATA is highway funding. But that is where agreement usually ends. I don’t see this proposal as being good for our industry.
I have long felt that a better alternative to the current system would the following: Allow the states to keep a significant portion(say 75 – 80%) of the federal fuel taxes generated in that state, which could only be used to fund maintenance of existing Interstate and US highways that would have to meet or exceed federal standards. The feds could audit the states use of the money on a regular or random basis to insure that the funds are being used as intended. The remaining funds (20 – 25%) would be used to fund the feds and congresses pork barrel projects.
This does not take into account other sources of revenue to the highway trust fund such excise taxes on vehicles, parts/tires and the federal heavy vehicle use tax(2290 funds) which may allow the states to keep as much as 100% of federal fuel taxes.
mike says
It’s a good idea , save by getting rid of duplicate federal positions and all subsequent federal employees will save millions just in utilities, supplies and viechle related expenses and purchases of equipment. The states can handle it more effectively. If a issue a rises then they can assist if need be.
Infosaur says
Maybe I ought to go into the buggy whip & river ferry buisness as all the roads revert back to goat paths.