America Builds: The Need for a Long-Term Solution for the Highway Trust Fund

Surface Transportation ReauthorizationHouse Transportation and Infrastructure Subcommittee on Highways and Transit · 2025-04-29 · 119th Congress
The House Transportation and Infrastructure Subcommittee on Highways and Transit held this hearing to examine long-term funding solutions for the Highway Trust Fund, which has spent more than it collects since 2001 and required $275 billion in general fund transfers since 2008. Begins at 0:06:04
Transcript
Highlights

Title

Fixing the Highway Trust Fund's long-term revenue shortfall

Purpose

The House Transportation and Infrastructure Subcommittee on Highways and Transit held this hearing to examine long-term funding solutions for the Highway Trust Fund, which has spent more than it collects since 2001 and required $275 billion in general fund transfers since 2008. The hearing previewed a reconciliation proposal to impose new federal EV, hybrid, and vehicle registration fees, and gathered witness perspectives on gas tax indexing, mileage-based user fees, and public-private financing as part of the next surface transportation reauthorization. Begins at0:06:04

Who spoke

Chairman David Rouzer (R-NC)0:06:36: Said the trust fund spent $70.6 billion against $50 billion in revenue last year, a $20+ billion deficit0:07:36; noted gas and diesel taxes have lost 73% of purchasing power since 19930:08:52 and previewed a reconciliation proposal for a $200 annual EV fee, $100 hybrid fee, and $20 fee on most other vehicles0:17:26.

Ranking Member Eleanor Holmes Norton (D-DC)0:10:50: Warned the trust fund is projected to be exhausted by 20280:11:09; argued for retaining the mass transit account and directing more resources to local roads, citing Brookings research that local roads are underfunded and in worse condition0:15:35.

Chairman Sam Graves (R-MO), full committee chair0:16:22: Said the IIJA increased trust fund spending by $102 billion while relying on a $118 billion general fund bailout0:16:45; detailed the reconciliation EV/hybrid/vehicle fee proposal, noting the $20 fee on other vehicles wouldn't start until 20310:17:54.

Rep. Mike Kennedy (R-UT)0:19:20: Introduced witness Carlos Braceras and later asked about lessons from Utah's road usage charge program for a national rollout2:40:10.

Carlos Braceras, Executive Director, Utah DOT0:20:37: Described Utah's statewide road usage charge program, letting EV owners choose a $140 annual fee or pay by mile (capped at $140)0:59:00; said Utah's program charges about $100 less than a comparable gas-tax payer1:00:20; cited the bridge formula program repairing 90 rural bridges0:23:14.

Ty Johnson, President, Fred Smith Company (NAPA witness)0:26:44: Said the Highway Trust Fund provides about 25% of North Carolina's DOT road program0:47:51; laid out four possible user-fee pathways—gas tax indexing, capturing EVs/hybrids, a national VMT program, and gross vehicle weight fees0:28:17; noted asphalt recycling saves state DOTs more than $3 billion annually0:30:06.

Jeff Davis, Senior Fellow, Eno Center for Transportation0:31:53: Said only 60 cents of every trust fund dollar spent last year came from user taxes, falling to 43 cents by 20350:34:38; estimated the annual revenue gap will hit $40–50 billion by 20350:34:08; said a national mileage fee likely can't be implemented in time for the next bill0:35:07.

Brian Burkhard, VP/Global Principal, Jacobs0:36:32: Said nearly 40 states have adopted EV fees but called them a stopgap, not a permanent fix0:38:51; urged full federal implementation of the IIJA-authorized mileage-based user fee pilot0:39:47; discussed Tennessee's $3 billion P3 "choice lanes" program2:20:35.

Adie Tomer, Senior Fellow, Brookings Metro0:41:53: Said the nation's roadways are worth over $5 trillion and move over 1 billion person-trips daily0:43:40; found 49% of locally-owned principal arterials are in poor condition versus 7% of similar state roads0:45:09; recommended a bipartisan working group to address new revenue options0:46:07.

Rep. Ty Johnson (R-NC) [0:46:34, questioning]: Asked witness Ty Johnson about the importance of trust fund solvency for project timelines and workforce stability0:46:34.

Rep. Ted Crawford (R-AR)0:58:14: Raised concerns about EVs' weight causing extra road wear without paying into the fund0:58:34; questioned Braceras on privacy safeguards for mileage tracking1:00:44.

Rep. Dusty Johnson (D)1:02:39: Criticized the GOP "no new tax" pledge as an obstacle to un-indexed gas tax increases since 19931:04:09; pressed Tomer on DOT funding conditions tied to immigration/DEI policy1:06:22.

Rep. Daniel Webster (R-FL)1:08:18: Asked witnesses whether they were tied to any specific funding proposal; Ty Johnson said NAPA is agnostic among the four options1:09:17; asked Burkhard about an infrastructure bank funded by private money1:10:14.

Rep. Julia Brownley (D-CA)1:11:40: Noted the committee has held repeated hearings on trust fund solvency since 2015 without a fix, suggesting a joint hearing with Ways and Means or shifting revenue jurisdiction1:12:33; asked when Ways and Means last held a hearing on the topic — Davis said around 20041:13:43; asked Braceras about LA/Utah coordination on Olympics transportation funding1:15:04.

Rep. Brian Babin (R-TX)1:16:50: Said Texas gets only an 84% rate of return on highway trust fund contributions1:17:10; asked Burkhard why mileage-based fees benefit rural drivers1:17:41.

Rep. Robert Garcia (D-CA)1:21:04: Cited a $244 billion national cost of congestion in 2022 [1:23:54 wait]; said the average vehicle paid $82 into the trust fund last year, calling the proposed $200 EV fee punitive1:24:36; asked Davis for a fairer EV fee amount — Davis suggested roughly $90–$1001:25:08.

Rep. Doug LaMalfa (R-CA)1:26:49: Asked Davis about historical turning points causing the structural deficit, including slowing VMT growth and rising fuel efficiency1:27:12; raised privacy and administrative-cost concerns about mileage tracking1:31:08.

Rep. Emilia Sykes (D-OH)1:31:59: Asked panelists to justify new fees to constituents struggling with cost of living amid tariffs1:33:38.

Rep. Mike Barrett — actually Rep. from context (R)1:37:42: Asked Ty Johnson how Congress can ensure more trust fund dollars translate into more actual paved miles1:38:10.

Rep. Jerry Nadler-style questioner (labeled "Mr. Nadler" in transcript)1:42:56: Asked Braceras about reauthorizing the BIL funding baseline plus inflation1:42:56; asked Davis about the history and importance of the mass transit account1:44:20.

Rep. Mike Collins (R-GA)1:48:32: Detailed the array of taxes truckers already pay (IRP tags, FET, tire tax, fuel tax, federal highway use tax)1:48:32; criticized IIJA spending on bike paths instead of roads and called for tort reform and energy independence1:50:29.

Rep. Jill Friedman-style questioner ("Miss Freriedman")1:53:51: Cited $244 billion in annual congestion costs and argued highway widening often fails to reduce congestion due to induced demand1:55:47; asked Tomer whether cost-benefit analysis is standard practice comparing transit versus highway investment1:57:17.

Rep. Pete Stauber (R-MN)1:59:38: Criticized the Biden administration's EV push as impractical in cold climates1:59:38; asked Braceras about Utah's $140 annual EV fee structure2:00:52.

Rep. Greg Stanton (D-AZ)2:03:25: Touted his bipartisan Highway Formula Fairness Act with Rep. Tony Gonzalez to use updated census data in apportionment2:05:08; asked Braceras how 10-year census data would affect Utah2:05:56.

Rep. Dusty Johnson (R-SD)2:08:36: Promoted his bill with Sen. Deb Fischer to charge EVs a fee accounting for weight, with 25 national associations' support2:09:34; asked witnesses to weigh in and also raised his NEPA-streamlining bill and a seven-year average EIS timeline2:11:19.

Rep. John Carveral-style questioner ("Mr. Carveral")2:13:35: Asked Tomer about states suballocating only 14% of transportation funds to local governments2:13:35; asked about MPOs' limited authority2:15:39.

Rep. Victoria Spartz-style questioner ("Mr. Shre")2:18:35: Asked Burkhard about Tennessee's P3 choice-lanes program and its 3-5x return ratio2:19:41; asked Ty Johnson about post-flood highway design resiliency in North Carolina2:22:56.

Rep. from Alabama ("Mr." unnamed)2:23:52: Discussed the Port of Mobile expansion's freight implications for rural highways2:24:15; asked Davis whether the trust fund adequately serves rural/low-income areas2:25:30.

Rep. Addison McDowell-style questioner ("Mr. McDow") (R-NC)2:29:18: Cited a $142 billion five-year shortfall projected by CBO2:29:47; asked Ty Johnson how trust fund uncertainty affects North Carolina hurricane recovery and project bidding2:32:16.

Rep. from Ohio ("Mr. Taylor")2:34:38: Questioned Burkhard and Davis on whether mileage-based fees actually benefit rural drivers beyond lower fuel efficiency2:35:09; pressed on the underlying mileage-per-gallon assumptions2:37:22.

Rep. Mike Kennedy (R-UT), second round2:40:10: Asked Braceras about lessons from Utah's RUC program and the state-federal partnership's future over 50 years2:40:41.

Rep. from California ("Mr. CI")2:44:58: Noted California has the nation's highest gas tax yet poor road conditions, asking Braceras and Johnson how to get better returns on spending2:45:28; asked about accountability mechanisms for performance2:47:48.

Rep. Burgess Owens (R-UT)2:49:21: Asked Braceras to detail how Utah has diversified funding (federal formula funds, state gas tax, 27.5% of state sales tax)2:50:18 and what would happen to Utah's five-year STIP if Congress fails to act2:52:12.

Key moments

Chairman Rouzer said the trust fund collected nearly $50 billion but spent $70.6 billion last fiscal year, a deficit exceeding $20 billion, with $275 billion transferred from the general fund since 20080:07:360:08:02.

Davis projected the trust fund will run out of money again in mid-2028, with the revenue gap rising to $50 billion/year by 2035 (about $340 billion cumulative), and only 43 cents of every dollar spent coming from user taxes by then0:34:080:34:38.

Chairman Graves and Rouzer previewed a reconciliation bill (to be voted on the next day) creating the first new HTF revenue stream in 30+ years: a $200 EV fee, $100 hybrid fee, and $20 fee on most other vehicles (delayed to 2031)0:17:260:18:20.

Davis said even eliminating mass transit, motor carrier safety, and highway safety programs entirely would still leave the Federal Highway Administration $9.5 billion short in 2026, showing cuts alone can't fix insolvency0:57:16.

Braceras detailed Utah's road usage charge program: EV owners can pay a flat $140/year fee or opt into per-mile charging, which averages about $100 less than what a comparable gas-tax payer would owe0:59:301:00:20.

Rep. Garcia noted the average vehicle paid only $82 into the trust fund last year while Republicans propose a $200 EV fee; Davis suggested a fairer EV fee, accounting for extra weight, would be closer to $90-$100 rather than $2001:24:361:25:59.

Rep. Dusty Johnson (D) argued that Grover Norquist's "no new tax" pledge, in force since 1986, has led most Republicans to block gas tax increases since 1993, eroding purchasing power via non-indexing1:03:391:04:35.

Rep. Friedman/questioner cited data showing a 42% increase in freeway lane miles in the largest 100 urbanized areas from 1993–2017 coincided with a 144% increase in congestion, questioning whether highway expansion reduces congestion1:55:171:55:47.

Rep. Babin said Texas receives only an 84-cent return for every dollar it contributes to the highway trust fund1:17:10.

Rep. Collins listed the array of taxes truckers already pay (IRP tags, federal excise tax on new trucks, tire tax, fuel tax, federal highway use tax) and argued road construction takes 7.5 years to start and 10 years to finish due to permitting and lawsuits1:48:321:50:29.

Metadata

CommitteeHouse Transportation and Infrastructure Subcommittee on Highways and Transit
Chamber / CongressHouse · 119th Congress
Date2025-04-29
TypeHearing
Witnesses
Mr. Ty Johnson — President, Fred Smith Company
Mr. Jeff Davis — Senior Fellow, Eno Center for Transportation
Mr. Brian Burkhard, P.E. — Vice President and Global Principal for Advanced Mobility Systems, Jacobs
Mr. Carlos Braceras, P.E. — Executive Director, Utah Department of Transportation
Mr. Adie Tomer — Senior Fellow, Brookings Metro
Videoyoutube
Transcript390 caption blocks · 27,942 words · 2:54:44 runtime
EventCongress.gov 117946