Skip to Content
Streetsblog USA home
Streetsblog USA home
Log In
Federal Funding

Flashback: Ronald Reagan Touts Gas Tax Hike, Transit Funding as Job Creators

On January 6, 1983, the icon of the modern conservative movement, Ronald Reagan, signed legislation to raise the gas tax for the first time in more than two decades, devoting a portion of the revenue to transit.

We've been reading about this moment a lot, as the current GOP leadership in the House tries to undo Reagan's legacy by eviscerating dedicated transit funding.

In this ABC News clip, you can see that Reagan touted the measure, a five cent gas tax increase, as an economic catalyst. It would raise $5.5 billion for transportation investment and result in 320,000 new jobs, the administration said. The measure even reserved one cent per gallon for transit, all for the cost of about $30 a year for the average driver.

Sounds like a win-win, right? After some initial resistance to the idea, Reagan eventually came around to that perspective, even if some special interest groups (truckers) didn't.

What a difference 29 years makes.

Stay in touch

Sign up for our free newsletter

More from Streetsblog USA

Thursday’s Headlines Are Charged Up for the Fourth

The Republican megabill is bad for the electric vehicle industry, but it could be worse.

July 3, 2025

Why is the Secretary of Transportation Begging Americans to Take More Road Trips?

Instead of making America easier to see on all modes, the US Department of Transportation is encouraging U.S. residents to just get in their cars and drive.

July 3, 2025

Wednesday’s Headlines Are for the Children

From mothers with babies in strollers to preteens on bikes, much of the U.S. is hostile to families just trying to get around without a car.

July 2, 2025

Ambulance Data Reveals That Boston Drivers Are 4 Times More Likely to Run Over Pedestrians From Black Neighborhoods

"Overall, residents of predominantly Black and Latino neighborhoods are about four times more likely than residents of predominantly white neighborhoods to be struck as a pedestrian."

July 1, 2025
See all posts