Obama Administration Delivers $302 Billion Transportation Funding Proposal Before Congress
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.
Seattle-based writer, blogger, and photographer for many a publication. Born in Louisville. Raised in Kansas. Where I lay my head is home.
More by Cameron Aubernon
Comments
Join the conversation
Haven't had time to think it through, but I am curious of others' thoughts here: Is the Interstate System a big part of the problem? It costs so much to maintain our infrastructure because there's just so damn much of it? We made it easy to live 60 miles from where we work and to commute every day. We made it easy to spread out and that made it necessary to put freight on trucks instead of rail, etc,etc...or is that system what underlied our tremendous growth? An irrelevant question, at this point, I am just curious.
NPS has a $12B maintenance backlog. Hopefully someone will cut them into the mix. Roads and parks are some of the few programs that everyone uses throughout their lives.
I do believe if the money used to subsidise vehicle manufacturers and the UAW was used to develop transport infrastructure and not business in the US (and other countries) the country would gain more benefit economically. The construction of better roads/transport serves everyone, not just the socialist UAW and hand picked industries. Increasing the cost of fuel would also help in the reduction in the use of gasoline/diesel in surface transport. This would also benefit the US.
I have always said if someone can tell me what costs the same as it did in 1993 then I will agree that the tax does not need to be increased. Funny how people can never answer that question with an example proving me wrong.