A $302 billion, four-year plan to fund the U.S. Highway Trust Fund — and, in turn, any road and transit projects on the table during the period — was brought before Congress by the Obama administration through the U.S. Department of Transportation.
Bloomberg Businessweek reports the proposal would add $87 billion on top of what is currently in the trust fund in order to bring much-needed dollars to the many bridges and transit systems seeking rehabilitation while creating “millions of jobs” and, thus, boosting the economy, according to Transportation Secretary Anthony Foxx. The fund, currently subsisting on gasoline and diesel taxes, would be funded by a temporary tax increase on overseas earnings by companies, which is the method proposed by President Barack Obama back in February 2014 in his budget request.
Meanwhile, both houses of Congress are seeking six-year funding proposals, though none have any financial resources to draw upon thus far. Further, lawmakers on both sides of the aisle have claimed there currently are not enough votes to raise the 18.4-cent tax levied per gallon of gasoline to boost the trust fund’s coffers. One such proposal, made in 2012, failed due to being unable to decide upon a funding source, resulting in a two-year stop-gap measure funded through general tax revenue to keep construction projects moving forward.
The proposal also requested an increase in the National Highway Traffic Safety Administration’s maximum fine for automakers who fail to issue recall notices on defective vehicles in a timely manner. The current maximum fine of $35 million would rise to $300 million “to ensure when a violation occurs it is more than a rounding error,” Foxx explained.