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Written by

Erika Young

Published on

June 22, 2015

June 17, 2015 — US House Ways & Means Committee — “Finding a Long-term Solution to Pay For America’s Roads and Bridges”

Witnesses:

Chad Shirley – Deputy Assistant Director, Microeconomic Studies Team, Congressional Budget Office

Robert Poole – Director of Transportation Policy and Searle Freedom Trust Transportation Fellow, Reason Foundation
Bill Graves – President and Chief Executive Officer, American Trucking Association

After more than two years without a hearing to discuss a long-term solution for surface transportation funding, the House Ways and Means Committee held a hearing titled, “Finding a Long-term Solution to Pay For America’s Roads and Bridges”. In his opening statements chairman Paul Ryan (R-WI) mentioned the need to find a long-term solution, and said the Committee was “all ears” to all ideas out there except for one – the gas tax. He flatly stated “We are not raising gas taxes—plain and simple.” During the hearing, witness Bill Graves, former Governor of Kansas and President and CEO of the American Trucking Association mentioned the gas tax as the least expensive option for raising money and the lesser of the funding evils. Mr. Poole of the Reason

Chairman Ryan flatly stated “We are not raising gas taxes—plain and simple.” During the hearing, witness Bill Graves, former Governor of Kansas and President and CEO of the American Trucking Association mentioned the gas tax as the least expensive option for raising money and the lesser of the funding evils. Mr. Poole of the Reason Foundation, concurred in keeping with the user pays, user benefits principle. He mentioned the need to also consider vehicle-miles-traveled fees as a long-term funding solution, increasing use of private-public partnerships, and integrating electronic tolling into the transportation system.

Republicans and Democrats on the committee all noted the need for action, but there was hesitancy for most Republicans committee members to speak favorably about increasing the gas tax. Many Republicans committee members expressed the need for changes to the overall program through streamlining environmental reviews and reducing regulatory burdens to get a “bigger bang for the buck”, with a smaller share of them going further in saying they would like to eliminate the non-highway components of the Highway Trust Fund such as transit and bicycle and pedestrian projects.

Rep. Patrick Meehan (R-PA) and Rep. Bob Dold (R-IL) fired back at the caucus members by mentioning the importance of the mass transit account in reducing congestion on our nation’s highways and the economic value that it has on local communities. Bill Graves of the American Trucking Association also rejected this argument by mentioning, “We’ve come to appreciate there is a big, diverse transportation community. The reality is that our nation needs all types of options.” Another idea largely criticized was devolving the federal transportation responsibilities to the states, which Mr. Graves mentioned was completely counter to the needs that existed and would dismantle an important partnership between states and the federal government.

In the end, the members of the Ways & Means Committee found no clear consensus for any transportation funding mechanism. Many of the members of the committee expressed unwillingness towards greater tolling, gas taxes were seen as too much of a burden for some, and vehicle-miles-traveled received criticism by Rep. Kristi Noem (R-SD) for possible negative implications for rural Americans. Public-private partnerships and private activity bonds were both talked about positively, without any noticeable criticism, but both ideas offer little in the way of solving our transportation funding crisis. The committee clearly has their work cut out for them, but the first hearing will not be their last. Rep. Dave Reicher (R-WA) announced that his subcommittee will hold a hearing next week to explore opportunities to explore using repatriated foreign earnings for the transportation system.