Has the Highway Trust Fund Outlived Its Usefulness? A Conversation With Beth Osborne.
Sep 30, 2024
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Beth Osborne, director of Transportation for America and former U.S. Department of Transportation official, dives deep into the struggles of the Highway Trust Fund. She outlines its troubled history and its effect on current transportation policies. The conversation highlights the urgent need for reevaluation of funding, addressing misconceptions about the gas tax, and the challenges of reauthorization. Osborne emphasizes the importance of shifting focus from highway expansion to maintaining existing infrastructure, advocating for innovative and sustainable solutions.
The Highway Trust Fund, established in the 1950s, has become unsustainable due to unchanged gas taxes and lack of accountability.
Current transportation funding disparities require states to increase local taxes for infrastructure, emphasizing the need for a cultural shift in spending priorities.
Deep dives
Overview of Local Motive Training Sessions
A series of live workshops called Local Motive Training Sessions aims to empower advocates with essential tools to enhance their communities. Taking place every Thursday from September 12th to October 31st, these sessions cover critical topics such as creating safer routes for school children, investing in affordable housing that strengthens neighborhoods, and developing community spaces through tactical urbanism. The sessions feature a variety of guest speakers from notable organizations, providing diverse perspectives and insights. Participants can choose to attend individual workshops or purchase a round-trip ticket to attend all eight sessions, with a portion of proceeds supporting the mission of fostering resilient cities.
The Significance of the Highway Trust Fund
The Highway Trust Fund, established as part of the Federal Highway Act in the 1950s, was designed to finance the construction and maintenance of highways through user fees, primarily the gas tax. Its original purpose was to facilitate efficient transport for military and civilian goods across the country but has evolved into a central mechanism for highway financing. However, the fund has faced scrutiny due to its structure that guarantees funding without the need for accountability or annual justification, leading to a backlog of maintenance needs across state and local roads. The discussion highlights the disparity in funding where states often end up maintaining local streets through property taxes, while reliance on federal funds diminishes as most spending goes towards new construction rather than maintaining existing infrastructure.
Challenges in Maintaining Infrastructure Funding
The conversation addresses the stark difference between state and federal funding for transportation, noting that most states have increased their gas taxes to cover maintenance costs as federal support has declined. The federal gas tax has remained unchanged since 1993, leading to an unsustainable system where localities rely on property and sales taxes to fund infrastructure. State agencies grapple with competing priorities, often incentivized to undertake new projects rather than focus on maintenance, which is crucial for sustainability. The resultant challenge lies in the credibility of state departments of transportation, which face skepticism regarding their claims about solving congestion through expansion instead of maintenance.
Future Considerations for Transportation Funding
A significant discussion point revolves around the upcoming expiration of the current transportation authorization in 2026, raising concerns about securing adequate funding for infrastructure. The need for a realistic dialogue on raising the gas tax or restructuring funding models is emphasized, as many states have moved ahead with their own tax increases rather than waiting for federal action. The potential shift towards ending the Highway Trust Fund could lead to states taking more responsibility for local infrastructure, but it would require a cultural change regarding taxation and spending priorities. The conversation suggests that, while challenging, a new model focusing on accountability and the equitable distribution of resources could emerge from necessity as the current system reveals its flaws.
On this week’s episode of the Strong Towns Podcast, Chuck is joined by Beth Osborne, the director of Transportation for America, to discuss the Highway Trust Fund. They cover its history, how it affects federal and state transportation policies, and its potential future.
Before joining Transportation for America, Osborne served as a deputy assistant secretary and acting assistant secretary in the U.S. Department of Transportation. She also worked in multiple congressional offices, served as the policy director for Smart Growth America, and served as the legislative director for environmental policy at the Southern Governors’ Association.