Economics

The U.S. Wants to “Borrow” From Transit to Pay for Highways

U.S. Transportation Secretary Mary Peters said yesterday that due to declining gas tax revenues, the Highway Trust Fund would need to borrow money from its mass transit account to pay for road projects. Today's big news story was buried at the bottom of page A17 in the New York Times:

By Aaron Naparstek

12:29 PM EDT on July 29, 2008

U.S. Transportation Secretary Mary Peters said yesterday that due to declining gas tax revenues, the Highway Trust Fund would need to borrow money from its mass transit account to pay for road projects. Today’s big news story was buried at the bottom of page A17 in the New York Times:

Gasoline tax revenue is falling so fast that the federal government
may not be able to meet its commitments to states for road projects
already under way, the secretary of transportation said Monday.
The
secretary, Mary E. Peters, said the short-term solution would be for
the Highway Trust Fund’s highway account to borrow money from the
fund’s mass transit account, a step that would balance the accounts as
highway travel declines and use of mass transit increases.

Meanwhile, America’s historically underfunded transit systems are also struggling with rising fuel prices and record demand. No word yet on how taking money away from transit to pay for highways fits in to George W. Bush’s plan to end America’s oil addiction but maybe time for Americans to take a good, hard look in the mirror and ask ourselves what kind of nation do we want to be?

Aaron Naparstek

Aaron Naparstek is the founder and former editor-in-chief of Streetsblog. Based in Brooklyn, New York, Naparstek's journalism, advocacy and community organizing work has been instrumental in growing the bicycle network, removing motor vehicles from parks, and developing new public plazas, car-free streets and life-saving traffic-calming measures across all five boroughs. He was also one of the original cast members of the "War on Cars" podcast. You can find more of his work on his website.