Approved by the Transportation Policy Committee on January 31, 2024
Approved by the Public Policy and Practice Committee on May 24, 2024
Adopted by the Board of Direction on
Policy
The American Society of Civil Engineers (ASCE) supports the concept of transportation trust funds, with revenues derived from user-based fees to provide a consistent, dedicated source of funding for transportation system improvements. Furthermore, ASCE recommends these funds be used only for their intended purposes by removing them from the unified federal budget or by other legislative means.
Trust fund assets should be used to the maximum practical extent to fund transportation improvements. ASCE supports the continued use of the motor fuels tax as a strong revenue source for surface transportation trust funds, and strongly encourages the continued evolution of other revenue-generating options.
Issue
Individuals and industries using the nation's highways, airports and waterways pay direct user fees to the federal government to support transportation improvement programs. These funds contribute to four separate trust funds – highways, airports, harbors, and waterways. Some of these trust fund balances have been utilized for other purposes in the past. Trust funds should only be used for their intended purposes.
Providing a sustainable, long-term solution for transportation infrastructure funding is critical. The Infrastructure Investment and Jobs Act (IIJA) passed in 2021 will provide significant funding for transportation for the next five years. However, this action does not address the long-term solvency issue facing the Highway Trust Fund (HTF). The application of firewalls for the HTF should be included in all future highway and transit transportation trust fund authorization bills. However, securing a strong, continuous revenue source must be the key focus of future legislation. Spending guarantees and supporting mechanisms should also continue to be used to protect transportation trust funds to help ensure collected funds are invested directly in transportation infrastructure.
As technology has led vehicles to be less or non-reliant on petroleum fuels, more vehicles are paying little, or no motor fuel taxes into the HTF. All vehicles using our highway systems should pay their fair share of the costs of these systems.
Rationale
There is an urgent need for capital improvements in all of the nation's transportation systems, as reflected in ASCE's 2021 Report Card for America’s Infrastructure. These needs have also been clearly identified and documented in the U.S. Department of Transportation's Conditions and Performance Report, and other sources. A modern, adequate transportation system, utilizing all modes, is absolutely necessary to maintain our expanding economy.
The ASCE economic study Bridging the Gap shows that, from 2024 – 2033, the nationwide impact of inadequate infrastructure to U.S. households totals $1.7 trillion if funding levels included in the Infrastructure Investment and Jobs Act (IIJA) become the new baseline for infrastructure investment. If funding reverts to pre-IIJA levels, the impact would grow to over $2.2 trillion.
Over the next 10 years, if federal investment levels are maintained, there will be household and employment benefits nationwide. American families will have an additional $550 billion in disposable income over the next decade and 237,000 American jobs will be saved.
ASCE Policy Statement 434
First Approved in 1994
Other ASCE policies that relate to transportation trust funds:
PS 382 - Transportation Funding
PS 497 - Surface Transportation Research Funding