RSC Transportation Solutions
Many conservatives argue that the states should be given more flexibility in spending transportation dollars and that most (if not all) of the highway program should be devolved to the states. According to Ron Utt, formerly of the Heritage Foundation, given the financial difficulties confronting the Highway Trust Fund, an opt-out plan has a number of benefits that a traditional turn back (or devolution) plan may not have. Under an opt-out program, a state would forgo its annual spending allocation from the Highway Trust Fund—with its many mandates, regulations, and dozens of specific spending allocations—and instead choose to receive its share of the federal fuel taxes collected within its borders. Representatives James Lankford, Scott Garrett, and Tom Graves have drafted bills which empower the states to decide how they want to disperse their highway dollars and get rid of the government red tape that’s squeezing our national budget. See below for more information
WSJ Transportation Editorial: Bank of Political Works
The Heritage Foundation: Backgrounder and Op-ed
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State Transportation Flexibility Act
H.R. 1585
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Sponsor: Rep. James Lankford (OK-05)
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Summary: The State Transportation Flexibility Act would give states the option to keep the funds they would otherwise be forced to contribute to the federal-aid highway program and the Mass Transit Account (MTA). By opting out, states would have the ability to manage their highway tax revenues dedicated for federal highway funding or mass transit accounts as they see fit. If a state chooses to opt-out of these programs, they would be able to collect, remit, and manage their own excise tax dollars, providing them the flexibility to fund their infrastructure priorities. In order for a state to opt-out, the governor must provide a plan to the Secretary of Transportation detailing the state’s intended uses for its funds.
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Documents: Bill Text, Bill Summary, Dear Colleague
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Outside Support: Americans for Tax Reform
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Surface Transportation and Taxation Equity Act
H.R. 1737
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Sponsor: Rep. Scott Garrett (NJ-05)
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Summary: The Surface Transportation and Taxation Equity (STATE Act) would empower the states by giving them the opportunity to generate more revenue, keep their funds from entering federal coffers, and determine their own transportation priorities free from federal mandates, all without additional cost to the taxpayer. The STATE Act accomplishes this by amending the tax code to allow a state that increases its state fuel tax to decrease its federal tax by an equal amount. The STATE Act leaves a minimum of two cents in the federal program to fund projects that are national in scope. In order to “opt out” of the federal program, a state must enter into an agreement with the Secretary of Transportation to provide for the proper maintenance of that portion of the interstate highway system within such state.
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Documents: Bill Text, Dear Colleague
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Transportation Empowerment Act
H.R. 3264
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Sponsor: Rep. Tom Graves (GA-09)
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Summary: The Transportation Empowerment Act devolves the federal highway program to the states by gradually phasing out the federal highway and mass transit programs so states can keep their gasoline taxes, set their own infrastructure priorities, and control their own transportation decisions. The plan transfers authority to states over a four-year period. During this time, the federal gasoline tax will remain at 18.4 cents per gallon but states will begin to receive a portion of their taxes in the form of block grants. On October 1, 2017, the transition will be complete and the federal gasoline tax will fall from 18.4 cents to 3.7 cents, allowing states to permanently control 14.7 cents per gallon of the current gasoline tax. This new flexibility will allow states to lower the effective gasoline tax, keep it the same, or increase it in order to meet their individual needs.
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Heritage Action Support: Key Vote Alert, Issue Profile
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