Today, the House Transportation and Infrastructure Committee Subcommittee on Highways and Transit convened a hearing to discuss long-term funding solutions for the Highway Trust Fund (HTF). The session, titled “America Builds: The Need for a Long-Term Solution for the Highway Trust Fund,” was led by Chairman David Rouzer.
The HTF has been spending more than its revenues for decades, resulting in $275 billion in bailouts from the Treasury General Fund since 2008. The committee aims to address this issue through both the highway bill and an upcoming reconciliation package. One proposal includes implementing a $200 registration fee for electric vehicles as they currently do not contribute to the HTF like traditional motor vehicles that pay through federal gas taxes.
During the hearing, five witnesses testified, including Ty Johnson, President of the Fred Smith Company based in Durham, N.C. Chairman Rouzer emphasized the importance of finding long-term solutions to ensure fiscal responsibility and fairness among all highway users.
“Today’s hearing focuses on the importance of long-term certainty and stability for the Highway Trust Fund,” Rouzer stated. He highlighted that since 2001, HTF spending has exceeded its revenues. In the most recent fiscal year alone, there was a deficit of over $20 billion as revenues totaled nearly $50 billion while expenditures reached $70.6 billion.
Rouzer also pointed out that gasoline and diesel taxes have not changed since 1993 and have lost significant purchasing power due to inflation. If these taxes had been indexed to inflation since then, an additional $480 billion could have been raised for the HTF.
To address declining gas tax revenue as vehicles become more fuel-efficient and electric vehicles remain exempt from fuel taxes, Rouzer mentioned that “this committee will propose a $200 annual registration fee on electric vehicles at the federal level.” This measure is expected to generate tens of billions of dollars in additional revenue over the next decade but will not fully cover an estimated shortfall of $142 billion.
The hearing served as part of ongoing efforts by Congress to find innovative methods to fund surface transportation programs effectively. Rouzer concluded by expressing gratitude towards those present: “We look forward to hearing from our witnesses on potential solutions.”
