Site icon ASCE's 2021 Infrastructure Report Card

States Approve Major Transportation Packages

highway: states increase gas tax

States are once again forging their own pathways to fund their roads and bridge programs.

In the meantime, four more states (California, Indiana, Montana and Tennessee) join the 19 others that have increased or modified their gas taxes to increase revenue since 2013. In each state the gas tax increase was just one piece of a larger transportation infrastructure funding package that enacts additional revenue streams to ensure a steady revenue stream for roads and bridges despite increasing fuel economy.

Here’s what these states have done:

These states took action as uncertainty at the federal level continues. The additional funding guaranteed by the passage of 2015’s FAST Act cannot be appropriated without a new federal budget. Additionally, the administration’s promise of a high-dollar federal infrastructure package has yet to come to fruition.

There are still a few other states that may join the ranks this year: Colorado, Minnesota, and South Carolina. Colorado’s legislature is trying to reach a compromise on its transportation funding package. While HB 1242 cleared the House, the bill is currently awaiting approval by the Senate Finance Committee. Minnesota’s legislature is current currently working through a conference committee to find a way to fund its roads that balance the funding need with the potential for a budget surplus. Governor Mark Dayton recently put forward the possibility of funding roads without a gas tax increase in an effort to bring both sides together. South Carolina’s Senate is nearing the end of debate on a 12-cent per gallon gas tax increase. Their version of HB 3516 is 2-cents apart from the 10-cent per gallon version passed by the House back in March and will require an additional vote by the lower chamber.

ASCE recommends that adequate funding for operating, maintaining, and improving the nation’s transportation system be provided by a comprehensive program with sustainable dedicated revenue sources. We will keep a watchful eye on these states as they move to close their transportation funding gaps and improve their transportation network.