National Commission Calls for Gas Tax Hike and Sweeping Changes to Fed Program

A report released by the National Surface Transportation Policy and Revenue Study Commission calls for a significant federal gasoline tax increase of up to 40 cents implemented over 5 years, and argues that “a cultural shift will need to take place across America to encourage our citizens to take transit or passenger rail when the option is given.” The commission was created under SAFETEA-LU to study current transportation conditions and future needs, and evaluate revenue sources to meet those needs.

Aside from the call for a steep gas tax hike, the Commission argues for sweeping changes to the federal surface transportation funding structure. It recommends consolidating the current 108 funding programs into just 10:

1. Rebuilding America: A National Asset Management Program

2. Freight Transportation: A Program to Enhance U.S. Global Competitiveness

3. Congestion Relief: A Program to Improve Metropolitan Mobility

4. Saving Lives: A National Safe Mobility Program

5. Connecting America: A National Access Program for Smaller Cities and Rural Areas

6. Intercity Passenger Rail: A Program to Serve High-Growth Corridors by Rail

7. Environmental Stewardship: A Transportation Investment Program to Support a Healthy Environment

8. Energy Security: A Program to Accelerate the Development of Environmentally-Friendly Replacement Fuels

9. Federal Lands: A Program for Providing Public Access

10. Research, Development, and Technology: A Coherent Transportation Research Program for the Nation

Significant funding would be available under these programs for both highway and transit capacity expansion, particularly in the nation’s major metropolitan areas. The Transportation Enhancements and CMAQ programs which currently provide the bulk of pedestrian- and bicycle-related funding are retained, with increased funding, under the new Environmental Stewardship program. Also notable is the proposed Intercity Passenger Rail program which would provide a stable, dedicated source of funding to improve and expand Amtrak service.

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