America’s highways and public transit systems face a looming crisis as the Highway Trust Fund (HTF) is projected to run out of money by 2028. This fund is vital for maintaining roads, bridges, and public transportation. A letter from over 100 policy experts and economists sent to Congress warns of severe cuts to transportation funding, potentially up to 46 percent. Such a drastic reduction would lead to project freezes and delays in payments, putting a heavier financial burden on states and their residents.
Transportation officials are expressing alarm over dwindling funds. A spokesperson for Rep. Sam Graves, the chair of the House Transportation and Infrastructure Committee, highlighted the inadequacy of the current gas and diesel taxes as sources of revenue. “More vehicles are using less gas…or no gas, in the case of EVs…so not everyone is paying their fair share for the use of the roads,” they stated. The traditional user-pay model, which has been in place since the fund’s inception, is increasingly strained. Revenue from fuel taxes has fallen short since 2001, largely due to improved fuel efficiency and the rising number of electric vehicles that do not contribute to gas tax collections.
Rep. David Rouzer, chairman of the House Highways and Transit Subcommittee, echoed concerns about the future of the HTF, stressing its importance to the nation’s security, economy, and day-to-day functioning. He noted, “As vehicles have become more fuel efficient…it is important to identify new sources of funding that are fair to all users and sustainable long-term.” The urgency for solutions is amplified with the expiration of the Bipartisan Infrastructure Law (BIL), which allocates roughly $383 billion to the HTF, looming in 2026.
Experts are suggesting various strategies to bolster the HTF, including revisiting the user-pay model. This model would ensure that drivers and riders contribute taxes proportional to their use of infrastructure. Ideas such as mileage-based fees and differential pricing based on vehicle type have emerged in discussions. The goal remains clear: reform funding methods to stabilize the HTF.
The efforts to rebuild infrastructure date back to the $1.2 trillion infrastructure bill signed into law in 2021, yet results have been disappointing. Although substantial funds were allocated, many infrastructure projects have stalled, especially concerning rural internet connectivity, with no projects initiated or users connected to date.
Current grading of America’s infrastructure reflects serious deficits. The 2025 Report Card for America’s Infrastructure bestowed a “D+” grade for roads, indicating only slight progress from prior assessments. Meanwhile, the Department of Transportation reported increased poor ride quality, highlighting a 22.6 percent decline in condition from 2008 to 2018.
The Highway Trust Fund primarily relies on gas taxes, comprising about 91 percent of its revenue. Despite remaining stable since 1993 at 18.4 cents per gallon, inflation and changes in vehicle use have rendered these figures obsolete. The growing prevalence of electric vehicles further complicates funding as fewer Americans contribute to the system’s upkeep. Implementing fees specifically for electric and hybrid vehicles has been discussed, but previous proposals have been excluded from final legislation.
Beyond funding, the letter to Congress highlights national security concerns, particularly focusing on vulnerabilities in GPS systems and the reliance on foreign-sourced batteries for electric vehicles. Suggestions include mandatory GPS backup systems tested by the Department of Transportation to mitigate risks posed by potential outages, which could cost the economy billions daily.
The situation extends beyond immediate funding concerns. Regulatory inefficiencies are inflating project costs and timelines, with overlapping federal, state, and local requirements causing significant delays, averaging 11 months and adding an estimated $5.1 million in costs per project in urban areas.
Experts caution this situation is not yet urgent, as the HTF is likely to be depleted by 2028. However, it will begin affecting funds for mass transit as early as 2027, creating cash-management challenges for states. Without swift action, many transportation projects could collapse under the weight of financial uncertainty.
The Congressional Budget Office (CBO) recently reported improved revenue projections, raising estimated HTF revenues by $82 billion from 2026 to 2035. These adjustments offer hope but do not replace the need for significant structural changes in funding and management. As it stands, the Highway Trust Fund gambles with the efficiency and safety of America’s vital transportation networks, underscoring the critical need for legislative attention and actionable solutions.
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