How is the federal highway fund funded?
Excise Taxes The Highway Trust Fund finances most federal government spending for highways and mass transit. Revenues for the trust fund come from transportation-related excise taxes, primarily federal taxes on gasoline and diesel fuel. The trust fund has separate accounts for highways and mass transit.
How is the Highway Trust Fund spent?
Options for Highway Spending In 2019, the federal government spent $47 billion on highways. Almost all of that was through grants from the trust fund to state and local governments for capital projects—that is, building new roads and rebuilding existing ones.
How much money does the Highway Trust Fund have?
Highway Trust Fund outlays total $58 billion a year, but highway spending is only $45 billion a year.
What is the largest source of revenue for state transportation funding?
Motor fuel taxes
Motor fuel taxes are the single largest source of state transportation funding, accounting for nearly 40% of all revenue. The degree of reliance on motor fuel tax revenue varies from state to state, ranging from 29 – 60 percent of state transportation funding.
Is the Highway Trust Fund underfunded?
What’s more, CBO projects that the cumulative shortfall in funding for the Highway Trust Fund will grow rapidly over the next 10 years to almost $190 billion in 2030 — that projection does not take into account any effects from the public health emergency caused by the coronavirus (COVID-19) pandemic.
Does the Highway Trust Fund still exist?
It currently has two accounts, the Highway Account funding road construction and other surface transportation projects, and a smaller Mass Transit Account supporting mass transit. The Highway Trust Fund was established in 1956 to finance the United States Interstate Highway System and certain other roads.
How much does the federal government make on gas tax?
Federal tax revenues Federal fuel taxes raised $36.4 billion in Fiscal Year 2016, with $26.1 billion raised from gasoline taxes and $10.3 billion raised from taxes on diesel and special motor fuels.
Where does gas tax revenue go?
Where do my gas tax dollars go? As a driver, you’re supposed to directly benefit from the gas taxes you pay. Federal gas tax revenue is pumped into a Highway Trust Fund. The HTF funds federal and state infrastructure projects for roads, bridges and public transportation systems.
How are roads funded?
For every gallon of gasoline we pump into our vehicles, the State of California collects a few cents of Gasoline Tax. The State then distributes money back to California counties using a formula based on each county’s number of registered vehicles. This money becomes a special revenue fund called the Road Fund.
How do states fund transportation?
State general funds are established through income taxes, sales taxes, property taxes, and other state and local fees. A number of states use dedicated state transportation trust funds to manage and disperse some or all of their transportation funds.
Who created the Highway Trust Fund?
The Highway Trust Fund is a special trust fund expenditure account in the U.S. Treasury established by section 209 of the Highway Revenue Act of 1956.