A recent House Transportation and Infrastructure Committee hearing explored solutions to ensure the Highway Trust Fund (HTF) remains financially sustainable as current revenues continue to fall short of long-term needs.
The HTF, established in 1956, funds construction and maintenance through two accounts: the Highway Account and the Mass Transit Account. While state and local governments cover about 80% of highway investment, the federal government contributed $52 billion in 2022—nearly all of it for capital projects.
Committee Chair Missouri Rep. Sam Graves said the HTF has faced insolvency since 2008 and criticized the Infrastructure Investment and Jobs Act (IIJA) for worsening the issue.
“Our highway funding system is founded upon the principle that roadway users must pay for their use,” Graves said. “Failing to restructure our surface transportation funding sources will have severe consequences.”
Among the witnesses, Carlos Braceras, Utah Department of Transportation executive director emphasized the importance of formula-based funding for its predictability and planning value. He called discretionary grants useful but unreliable and stressed that states depend on the HTF’s five-year contract authority to plan multiyear projects.
However, Braceras warned that reliance on general fund transfers—now totaling more than $275 billion—undermines that predictability.
To address declining fuel tax revenues, Braceras proposed a mileage-based user fee as a potential replacement.
“The current funding trajectory of the HTF is unsustainable,” he said. “We must find viable revenue options to ensure continued investment in America’s transportation infrastructure.”
The committee continues to review potential funding mechanisms ahead of the HTF’s next reauthorization deadline.
Source: AASHTO, House.gov
