Skip to Content
Streetsblog USA home
Streetsblog USA home
Log In
Gas Tax

New Report: Road Funding From Non-Road Users Doubled in 25 Years

highway_funds_chart.png(Image: Subsidyscope)

The myth that U.S. roads "pay for themselves" thanks to user fees is a subject that's likely familiar to many Streetsblog Capitol Hill readers -- but just how much of the nation's highway funding is provided by charging drivers?

The answer may surprise even active critics of the current asphalt-centric transportation system. Between 1982 and 2007, the amount of federal highway revenue derived from non-users of the highway system has doubled, according to a study released today by Subsidyscope.

Analyzing Federal Highway Administration data dating back to 1957, the dawn of the Interstate system, Subsidyscope researchers found that non-users of the highway system contributed $70 billion for nationwide road construction and maintenance in 2007. In 1982, by contrast, highway contributions from non-users totaled just $35 billion (in 2007 dollars).

Today's study also found that the share of road funding generated by user fees fell to 51 percent in 2007, down from 61 percent just a decade earlier. (The accounting used by Subsidyscope, a joint project of the Pew Charitable Trusts and the Sunlight Foundation, accounted for the use of about one-sixth of federal gas tax revenue to pay for transit.)

What has caused the government's increasingly rapid dependence on non-road user fees -- which more often than not take the form of direct transfers from the Treasury -- to pay for roads?

Subsidyscope points out that the federal gas tax has stayed stagnant since 1993, rapidly losing value as inflation climbs, but the growing popularity of bond issuances as a way to pay for new roads is also a factor. According to Subsidyscope's research, the value of new bonds issued to pay for highways reached $24.7 billion in 2007, up from just $6 billion in new bonds issued in 1982 (converted to 2007 dollars).

Bond offerings, which often represent states and localities playing a greater role in transportation planning, do not guarantee that users will be paying for new highway construction -- rather, bonds depend on market conditions to allow a successful leveraging of debt, and the recent economic downturn has forced many governments to limit their bonding plans.

Stay in touch

Sign up for our free newsletter

More from Streetsblog USA

Friday’s Headlines Take Me to the River

Politico reports that the Biden administration is investing $2.5 billion in updating aging Mississippi River locks and dams like this one in Iowa. Transporting freight by barge produces less emissions than trucks or even rail.

July 12, 2024

Friday Video: Take a Spin on Boston’s Electric Cargo Bike Share

Can't afford a $7,000 Urban Arrow cargo e-bike ? In Boston, you can now rent one for just a few bucks.

July 12, 2024

Talking Headways Podcast: Electrify the Rails

Adrianna Rizzo of Californians for Electric Rail on California's looming lobbyist-fueled hydrogen train mistake: "We’re locking in low service for potentially decades."

July 11, 2024

Thursday’s Headlines Drive Less

Seems obvious that the more people drive, the more likely they are to die in a crash or kill someone else, but traditional thinking on traffic safety doesn't always follow that logic, according to Planetizen.

July 11, 2024
See all posts