There is general consensus that funding for transportation should be dramatically increased. However, it is not clear where additional funding would come from. In addition, existing revenue sources are not enough even to maintain existing funding levels. The balance of the Highway Account in the Highway Trust Fund (HTF) will be spent down by 2009, and additional sources of revenue will be needed.

IAC is at the forefront of analyzing issues related to this funding gap. IAC is tracking all policy developments, hearings, and events. FHWA Administrator Rick Capka has concluded that the current HTF is “no longer sustainable”. The nomination of Mary Peters as DOT Secretary is likely to increase the amount of Public-Private Partnerships. In addition, the Surface Commission is discussing the possibility of indexing the gasoline tax to inflation. And, SAFETEA-LU has funded research to develop next-generation future alternatives such as mileage-based taxation via GPS monitoring.

The future of transportation financing is now at the front of the debate at the Federal, State, and Local government levels. The traditional Federal-Aid program will likely be supplemented or, perhaps, entirely changed.

These issues have been featured in 3 major recent publications:

• NCHRP Report: Future Options for the Interstate System
• National Chamber Foundation: Future Highway and Public Transportation Financing
• TRB Special Report 285: The Fuel Tax and Alternatives for Transportation Funding

IAC utilizes experienced transportation researchers; our location in Washington, DC; and an extensive network of transportation professionals. We provide timely, insightful analysis—and succinct, detailed findings—on this topic.