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The way we finance new highways and roads is no longer working

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Why This Matters

The current funding model for highways and roads is becoming unsustainable as non-drivers increasingly subsidize road maintenance through taxes like the federal gas tax. This shift highlights the need for innovative financing solutions to ensure equitable and sustainable infrastructure funding. Addressing this issue is crucial for maintaining and improving transportation networks for future generations.

Key Takeaways

Those who use the roads should pay for the roads. Taxpayers who don’t or can’t drive are increasingly subsidizing those who do, and it’s not sustainable. For decades, the main way we paid for highways, bridges, and major roads was through dedicated user fees. The biggest one is the federal gas tax. States have their own gas taxes too, plus vehicle registration fees and tolls in some places.