Future transportation funding policy must be more consistent with the public policy objectives of reducing petroleum consumption and protecting the environment than the current funding policy is, which relies on taxes on fossil fuels as its funding mainstay. Reliance on fossil fuel consumption to generate most of the federal surface transportation revenues—while at the same time not charging the full costs of such consumption—is at odds with these increasingly important objectives. Revenue-raising mechanisms that charge the full cost of system use (including externalities such as carbon emissions), that incorporate demand management techniques, and that promote transit and high-occupancy vehicle use can support reduced petroleum consumption and improved environmental outcomes.