The Highway Trust Fund (HRF) is the predominant vehicle for supporting federal investment in road and bridge construction, maintenance and repair projects. The HTF faces a projected shortfall, though, because its primary revenue source – the gas tax – has not kept pace with inflation. Increased vehicle fuel efficiency as exacerbated the gap in the HTF’s budget.
Congress most recently passed a five-year extension of highway project funding through 2020, adding needed certainty to the highway construction industry that has been lacking during a series of short-term measured that preceded this legislation. Still, Congress has not addressed the underlying question of how the HTF is funded, and will have to tackle the issue in the coming years. The new Trump administration has indicated that it may push for a broad but unspecified infrastructure package as part of its first 100 days.
AEM urges the new Trump administration and leaders in Congress should pass a robust infrastructure investment package that addresses persistent shortfalls in our transportation infrastructure system. AEM supports a variety of other types of infrastructure investments that will help rebuild the foundation of America’s economy and spur manufacturing growth. AEM believes that long-term, sustainable infrastructure investment should be part of any effort to reform the U.S. tax code.