The current state of U.S. surface transportation funding and investment paints a troubling picture. While highway and transit investment by all levels of government has grown somewhat in recent years, it has not kept pace with system demand, and the backlog of needed investment continues to expand. At the same time, the federal HTF faces a near-term solvency crisis, exacerbated by recent reductions in federal motor fuel tax and truck-related user fee receipts. Both problems will persist until Congress addresses the fundamental fact that HTF revenues under current law are inadequate to support current federal program levels.
Looking to the future, estimates of surface transportation investment needs and current revenues developed by the Commission and other sources uniformly show a widening highway and transit funding gap over the next 25 years. As summarized in Exhibits 2-28 and 2-29, current spending by both the federal government and the nation as a whole is only about one-third to one-half of the amount required to adequately maintain the system and make key improvements. And, as illustrated in this chapter's gap analysis under different investment scenarios and revenue projections, addressing future needs through conventional approaches would require significant increases in motor fuel taxes— placing even greater reliance on a funding source that is unsustainable in the long run. Thus, while an immediate increase in existing federal revenue sources is an essential short- term step, long-term solutions must involve new ways of funding surface transportation infrastructure.