Highway construction and maintenance workers implementing crucial infrastructure projects.
Washington, D.C., August 14, 2025
Rep. Sam Graves has outlined four essential priorities for the upcoming surface transportation reauthorization bill as Congress prepares to address funding and key focuses for highway and transit infrastructure projects. With projections indicating potential insolvency of the Highway Trust Fund by 2028, lawmakers are urged to prioritize formula funding, streamline permitting processes, increase state flexibility, and identify new revenue sources. Environmental review reforms and alternative funding mechanisms, such as vehicle-miles-traveled fees, are also considered crucial for ensuring robust infrastructure support in the years to come.
Rep. Sam Graves, who leads the House transportation and infrastructure committee, recently shared critical insights into the forthcoming surface transportation reauthorization bill. As the nation faces the prospect of the Highway Trust Fund becoming insolvent by 2028, lawmakers have begun to address the implications of this funding source, which primarily relies on the federal gas tax, unchanged since 1993.
Currently, Congress is in the early stages of drafting the new legislation, aimed at determining vital funding levels and infrastructure project priorities for highways and transit systems. Lawmakers have until September 30, 2026, to pass this bill, as the current authorization will expire on that date. With pressure mounting to ensure sustainable funding, four overarching goals outlined by Graves aim to set the course for the future of transportation infrastructure.
The four key priorities that Graves emphasized include:
In the backdrop of these initiatives, major construction groups have expressed a strong preference for enhancing formula funding rather than relying heavily on discretionary grant programs, which often experience slower expenditure rates. Industry leaders argue that formula funds can be more readily mobilized for immediate infrastructure needs.
Efforts to improve the efficiency of project delivery are also taking center stage. Expanding the use of NEPA Assignment, which allows states to assume responsibility for conducting National Environmental Policy Act reviews, is a significant recommendation. Currently, only eight states have taken up this assignment, yet they have seen notable enhancements in the delivery of their projects.
Recent collaborations between the U.S. Department of Transportation and state transportation departments have focused on speeding up project timelines and controlling expenditures. For instance, the anticipated expansion of the One Federal Decision policy aims to fast-track environmental reviews, significantly reducing hindrances related to permitting.
Transitioning into new revenue streams is another integral aspect of the conversation. Traditional funding from the federal gas tax is proving inadequate, leading Graves to propose alternative avenues such as registration fees for electric and hybrid vehicles. Moreover, legislative groups stress the necessity of maintaining current funding levels while adjusting for inflation.
Suggestions have emerged from notable transportation organizations, with calls for $138 billion dedicated to public transit and $130 billion earmarked for passenger rail systems over the next five years. Civil engineering groups have also pointed to the notion of indexing transportation user fees to alleviate the impacts of inflation on funding.
As discussions progress, the complexity of acquiring sufficient funding for future transportation projects presents significant challenges for lawmakers and industry advocates alike. With the stakes high, the next surface transportation bill will play a crucial role in shaping America’s infrastructure landscape for years to come.
The Highway Trust Fund is a federal fund that primarily provides funding for highway and transit projects across the United States, largely financed through the federal gas tax.
Concerns arise as the Highway Trust Fund is projected to reach insolvency by 2028, which could severely limit funding available for crucial infrastructure projects.
Proposals include exploring registration fees for electric and hybrid vehicles and the potential implementation of vehicle-miles-traveled fees as alternatives to the gas tax.
NEPA Assignment allows states to take on responsibilities for the National Environmental Policy Act’s review process, which can lead to faster project delivery.
Priority | Description |
---|---|
Formula Funding | Efficient allocation of funds directly to states. |
Permitting Reform | Shortening project timelines for quicker completions. |
State Flexibility | Allowing states to better manage funding and projects. |
New Revenue Sources | Finding alternative funding methods for sustaining the Highway Trust Fund. |
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