Earlier this week, in an effort to save the Highway Trust Fund from becoming bankrupt this Summer, a bipartisan proposal by Senators Chris Murphy (D-Connecticut) and Bob Corker (R-Tennessee) was introduced to increase the federal gasoline and diesel taxes by 12 cents over the next two years, and index the rate to inflation. The last time the federal gas tax was increased was in 1993, and since that time, federal gas tax receipts have failed to keep pace with the needs of our state and federal transportation programs. Despite the fact that a leading and well-respected Republican on the Senate Banking Committee is a co-sponsor of the proposal, it is likely to face significant opposition from many of his Republicans colleagues in both the Senate and the House who have signed on to a “no new taxes” pledge. It appears that the proposal to fund a temporary extension of the highway program through elimination of Saturday postal delivery service continues to remain off the table, while other funding proposals continue to be discussed. However, it is still too early to tell which of these proposals, if any, will gain any traction. We expect various additional proposals will be made over the coming weeks as Congress continues to grapple with how to fund the diminishing Highway Trust Fund.
