ARTBA Launches Broadside Against Federal Gas Tax Suspension Proposal

What happened: Six U.S. Senate Democrats Feb. 9 introduced legislation to suspend the federal gasoline user fee for the remainder of 2022. ARTBA sent a same-day letter to Senate Majority Leader Charles Schumer (D-N.Y.) and Minority Leader Mitch McConnell (R-Ky.) opposing the measure.

‘We urge the Senate to resist this proposal which could open the door to unravelling the largest infrastructure package in American history and instead focus on delivering the first year of promised investments by completing the FY 2022 appropriations process,’ ARTBA President Dave Bauer said.

Why it matters: The gasoline tax is currently the single largest source of revenue for federal highway and public transit programs. During the past 20 years, multiple legislative attempts by members of Congress to temporarily cut or repeal the federal gas tax have failed. Legislators or governors in at least 13 states in recent weeks have also made similar proposals aimed at their state motor fuel taxes. The correlation of these maneuvers to their desired outcome—immediate price relief at the gas pump—is uncertain at best, ARTBA research shows.

Key resources:

• The Transportation Investment Advocacy Center (TIAC) has tracked 113 gasoline tax increases and decreases in 29 states from 2013 to 2018. It shows minimal impacts on pump price.
• The U.S. Energy Information Administration (EIA) projects gasoline prices will drop over the next year.

What’s next: While the Senate bill would offset any Highway Trust Fund revenue reduction with federal general funds, ARTBA opposes proposals that could establish a precedent for a federal gas tax suspension. The association will continue to advocate for measures that help ensure the long-term revenue sustainability for highway and public transit investment.