Washington, D.C., August 14, 2025
News Summary
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.
Key Priorities for Next Surface Transportation Reauthorization Bill Identified
As concerns escalate regarding the sustainability of the Highway Trust Fund, Representative Sam Graves, the chair of the House transportation and infrastructure committee, has outlined four significant goals for the forthcoming surface transportation reauthorization bill. This bill is critical for determining funding levels and establishing priorities for highways and transit infrastructure projects for the years ahead.
Currently, Congress is in the early deliberations of formulating this essential legislation, which needs to be passed before the prior authorization expires on September 30, 2026. Alarmingly, experts predict that the Highway Trust Fund could become insolvent by 2028, which adds urgency to the task at hand.
Collaboration with Industry Groups
The U.S. Department of Transportation (DOT) is working closely with lawmakers and construction industry groups to identify shared priorities. Major construction associations strongly advocate for prioritizing formula funding over discretionary grant programs. According to proponents, formula funding is the most effective method to allocate financial support to states.
The prior surface transportation bill, known as the 2021 Infrastructure Investment and Jobs Act, allotted over $560 billion to the DOT, which included a dedicated $305 billion for transportation projects over five years. Industry experts highlight that discretionary grant funding tends to be slower in being utilized compared to formula-based allocations, thereby delaying vital infrastructure improvements.
Graves’ Four Key Priorities
Graves presented four main objectives that he believes should guide the next transportation reauthorization bill:
- Prioritizing formula funding: Emphasizing the importance of efficient fund allocation.
- Permitting reform: Aiming to shorten project timelines and expedite project delivery.
- Providing flexibility to states: Allowing states greater discretion to address local needs.
- Identifying new revenue sources: Finding alternatives to support the Highway Trust Fund.
One potential reform under consideration is the expansion of the NEPA Assignment initiative, which enables states to assume responsibility for conducting National Environmental Policy Act reviews. Although only eight states have successfully participated in this program, those that have reported significant improvements in project delivery times.
Potential Sources of Funding
Current revenue for the Highway Trust Fund primarily comes from the federal gas tax, which has not seen an increase since 1993. Graves has suggested several novel revenue sources, including registration fees on electric and hybrid vehicles. Legislative groups stress the importance of maintaining current funding levels while also accommodating for inflation, highlighting ongoing challenges with funding transportation projects.
The American Public Transit Association has recommended a substantial investment of $138 billion for public transit and $130 billion for passenger rail projects over the next five years. Additionally, civil engineers propose indexing transportation user fees to inflation to safeguard purchasing power.
Exploring Alternative Funding Models
Another potential measure under consideration is the implementation of vehicle-miles-traveled fees as an alternative revenue source, working alongside the existing gas tax and fees for electric and hybrid vehicles. The overarching concern remains for lawmakers and industry groups alike regarding the complexities of securing adequate funding for transportation projects.
FAQs
What are the main goals for the upcoming transportation reauthorization bill?
The main goals include prioritizing formula funding, permitting reform, providing states more flexibility, and identifying new revenue sources for the Highway Trust Fund.
What is the current state of the Highway Trust Fund?
The Highway Trust Fund is projected to reach insolvency by 2028, making it vital for Congress to act quickly on this legislation.
How has construction industry voiced its concerns?
Major construction groups advocate for formula funding over discretionary grants, highlighting the efficiency of direct allocations to states and calling for reforms like NEPA Assignment to expedite projects.
With a year remaining to finalize the proposed bill, the upcoming surface transportation reauthorization presents a complex challenge, yet is full of opportunities for enhancing U.S. infrastructure.
Deeper Dive: News & Info About This Topic
Additional Resources
- ENR: Construction Groups Float Goals for Next Surface Transportation Funding Legislation
- Wikipedia: Transportation in the United States
- Transport Topics: Sam Graves Tapped Again
- Google Search: Surface Transportation Reauthorization Bill
- Roll Call: In a Party of Firebrands, Graves Sidesteps Limelight
- Encyclopedia Britannica: Highway Trust Fund
Author: Construction CA News
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