House, Senate Continue Discussions on Transportation Funding

On June 17, the House Ways and Means Committee held a hearing addressing financing the Highway Trust Fund (HTF). Chairman Paul Ryan (R-WI) began the hearing by stating that he would not support raising the federal gas tax. The federal gas tax is currently at 18.4 cents a gallon and was last increased in 1993. The HTF has been operating with funding shortfalls since 2008 and subsequently Congress continues to pass short-term extensions paid for by general fund transfers or other financing gimmicks. The latest short term extension runs until July 31, right before Congress breaks for the month-long August recess. Ryan acknowledged that it is highly likely that the House will pass an extension until December, meaning another extension would be funded by another general fund transfer.

In the Senate, the Finance Committee held a hearing on the future of highway funding on June 18. Chairman Orin Hatch (R-UT) didn’t come out opposed to raising the federal gas tax, but stated he was not confident that such a measure would pass this Congress. Hatch urged his colleagues to pass a long-term bill and to consider all revenue options on the table. According to the Congressional Budget Office, an estimated $92 billion is needed in addition to the revenue raised from the current gas tax to adequately fund a six year transportation bill.

NRMCA, along with members of the Highway Materials Group (HMG), sent letters to the House Ways & Means and Senate Finance Committees calling for prompt action on passing a long-term surface transportation bill that increases infrastructure investments and addresses the shortfalls facing the HTF.  Besides NRMCA, other HMG members include the American Coal Ash Association, American Concrete Pavement Association, Association of Equipment Manufacturers, Associated Equipment Distributors, Concrete Steel Reinforcing Institute, National Asphalt Pavement Association, National Stone, Sand & Gravel Association and Portland Cement Association.