The Federal Environment for Surface Transportation Infrastructure

Historically, most federal spending for highways, bridges, and mass transit has been paid for by revenues—largely from excise taxes on gasoline and diesel fuel—that are credited to the Highway Trust Fund. For more than two decades, those revenues have fallen short of federal spending on highways, prompting transfers from the Treasury’s general fund to the trust fund to make up the difference. The Congressional Budget Office projects that balances in both the highway and transit accounts of the Highway Trust Fund will be exhausted in 2028.

This presentation provides an overview of the following:

• Projected cash inflows, outlays, and balances of the Highway Trust Fund
• Possible options that would affect Highway Trust Fund spending and revenues
• Public spending for transportation infrastructure
• Types of tax-exempt bonds for transportation infrastructure