which is a major controversy regarding the federal highway trust fund? course hero

What is the highway trust fund and why is it important?

The Highway Trust Fund provides a steady source of funding for investment in and maintenance of essential infrastructure. Likewise, safe and efficient infrastructure is a significant contributor to economic growth and productivity. Yet, by many measures, the current system is not meeting America’s 21st century needs.

What is causing the federal highway funding shortfalls?

What’s more, rising construction costs and the growing needs of an aging highway system have placed a greater strain on the fund, resulting in recurring funding shortfalls in recent years.

When will the mass transit account and Highway Trust Fund run out?

CBO projects that the Mass Transit Account will be exhausted in 2021 and the Highway Account in 2022; in 2019 alone, the Highway Trust Fund’s outlays exceeded revenues by $11.6 billion.

How many groups are involved in the establishment of Transportation Policy?

The establishment of transportation policy and the development of transportation is complicated by the number of groups that are involved. Which groups are involved? In addition to the Congress and the President, more than 60 federal agencies and 30 congressional committees set transportation policy.

What is the purpose of the Highway Trust Fund?

The Highway Trust Fund (HTF) was established in 1956 to provide a more dependable source of funding from the federal government for the construction of the interstate highway system. The HTF is comprised of two constituent accounts:

How much does the Highway Trust Fund get from excise taxes?

Where does the Highway Trust Fund get its funding? The Congressional Budget Office (CBO) reports that the Highway Trust Fund received 82 percent ($36 billion) of its revenue in 2019 from excise taxes on motor fuel, commonly known as the “gas tax.”.

How much did the federal government spend on highways in 2017?

However, funding from the HTF also plays an important role in facilitating many projects. In 2017, the federal government contributed $46 billion in highway investment, 95 percent of which went towards specific capital ...

What is federal assistance?

Federal assistance comes most often in the form of grants and other direct contributions, but also in a number of financing mechanisms like tax-preferred bonds and direct federal credit programs that allow states and localities to finance projects on more favorable terms.

What is the ranking of the United States in road quality?

According to the World Economic Forum, the United States ranks 17th in road quality, and 13th in overall infrastructure quality. TWEET THIS. Considering the importance of infrastructure in transporting goods and people in the economy, this puts the United States at an economic disadvantage.