• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

Now worth $200 million, Sarah Jessica Parker credits being ‘one of eight kids that struggled financially’ for her hunger, ambition, and work ethic

2

The Pentagon said Iran War costs $29 billion, but the real cost is closer to $200 billion—and counting

3

Amazon's record Prime Day masks a darker truth: Americans are spending more and getting less

1

Now worth $200 million, Sarah Jessica Parker credits being ‘one of eight kids that struggled financially’ for her hunger, ambition, and work ethic

2

The Pentagon said Iran War costs $29 billion, but the real cost is closer to $200 billion—and counting

3

Amazon's record Prime Day masks a darker truth: Americans are spending more and getting less
Infrastructure

Higher Gas Tax Needed to Restore U.S. Highways, Report Says

By
Bloomberg
Bloomberg
Down Arrow Button Icon
By
Bloomberg
Bloomberg
Down Arrow Button Icon
December 6, 2018, 2:47 PM ET
Add Fortune on Google for similar content.

As much as $70 billion annually will be needed over the next two decades to upgrade U.S. interstate highways, far above the $25 billion now being spent, according to a report that proposes raising federal fuel taxes and allowing more tolling to help make up the difference.

The report, commissioned by Congress and released on Thursday, comes as President Donald Trump and Democrats taking control of the House of Representatives in January vow to pursue major public-works legislation in 2019 — but with no consensus on how to pay for it.

Congress should create a program modeled after the original interstate construction effort and increase U.S. fuel taxes — currently at 18.4 cents a gallon for gasoline and 24.4 cents for diesel — while allowing them to increase with inflation, the report by the National Academies of Sciences, Engineering, and Medicine concluded.

The authors didn’t recommend an amount, but said the gas tax would have to rise to almost 30 cents a gallon within 10 years, and the diesel levy to about 40 cents, to generate $20 billion annually.

Other recommendations include lifting the current restriction on adding tolls to existing general-purpose interstates, and preparing for new funding and financing mechanisms such as charging motorists per mile traveled as well as accounting for the rise of automated vehicles and climate change.

“We recommend a course of action that is aggressive and ambitious, but by no means novel,” Norman Augustine, the former chairman and chief executive officer of Lockheed Martin Corp., who led the study committee, said in a statement. “Essentially, we need a re-invigoration of the federal and state partnership that produced the Interstate Highway System in the first place.”

The 2015 federal highway bill called for a study of how to upgrade the system, which was authorized under President Dwight Eisenhower in 1956. Most of its segments are decades old, have much heavier traffic than planners expected, and are operating longer without upgrades than they were designed for, the report said.

About $25 billion in federal and state capital funds are spent on the system annually, the study said — and $45 billion to $70 billion a year over 20 years is needed, depending on estimates of increased traffic.

Funding Absent

The committee said those estimates could be low because they don’t include the funding needed for rebuilding or reconfiguring many of the 15,000 interchanges, or to make the system more resilient to extreme weather.

Trump campaigned on a promise to invest more than $1 trillion to upgrade U.S. roads, bridges, and other public works. But the plan his administration released in February lacked a defined funding source, and stalled after a few hearings.

The president and incoming Democratic House leaders have said an infrastructure measure is something they could accomplish on a bipartisan basis in 2019, and Democrats are seeking a significant spending bill in the first six months. But there’s still no agreement on how to pay for it.

The Transportation Research Board, which helped produce the report, has started briefing staff of key congressional committees about the findings and could participate in hearings on an infrastructure plan, said Neil Pedersen, the group’s executive director.

Business groups including the U.S. Chamber of Commerce and the American Trucking Associations have backed an increase in federal fuel taxes, which haven’t been increased since 1993 and have lost purchasing power with inflation and the increased fuel efficiency of vehicles.

Fuel taxes generate 87 percent of revenues for the Highway Trust Fund that pays for projects, but they’re a declining source, the report said: by 2020, Congress will have transferred $143.6 billion from general revenues to the fund to help keep it solvent.

While Trump surprised a group of lawmakers in February by saying he would support a 25-cent-per-gallon increase, he never endorsed that publicly, and prominent Republicans flatly rejected any tax increase.

Thursday’s report also pointed out that the Republican tax overhaul passed in 2017 could increase the deficit by as much as $1 trillion — making options such as borrowing and using general fund money to supplement highway funding less feasible.

About the Author
By Bloomberg
See full bioRight Arrow Button Icon
Add Fortune on Google for similar content.

Latest in

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in

A pedestrian walks past a Gucci luxury fashion store at a shopping district on June 24, 2026, in Shenzhen, Guangdong Province, China.
RetailLuxury
Rich consumers taking GLP-1s are rebuying their wardrobes and eating smaller, fancier dishes—it’s a factor saving the luxury sector right now
By Eleanor PringleJune 25, 2026
1 hour ago
Lux Capital cofounder Josh Wolfe’s limited-odds, high-stakes 2027 predictions
NewslettersTerm Sheet
Lux Capital cofounder Josh Wolfe’s limited-odds, high-stakes 2027 predictions
By Allie GarfinkleJune 25, 2026
2 hours ago
A 6 year study shows which CEOs are pushing RTO mandates: The ones with the biggest egos
NewslettersCEO Daily
A 6 year study shows which CEOs are pushing RTO mandates: The ones with the biggest egos
By Claire ZillmanJune 25, 2026
2 hours ago
Top CD rates today, June 25, 2026: Lock in up to up to 4.40%
Personal FinanceCertificates of Deposit (CDs)
Top CD rates today, June 25, 2026: Lock in up to up to 4.40%
By Glen Luke FlanaganJune 25, 2026
2 hours ago
Today’s top high-yield savings rates: Up to 5.00% on June 25, 2026
Personal FinanceSavings accounts
Today’s top high-yield savings rates: Up to 5.00% on June 25, 2026
By Glen Luke FlanaganJune 25, 2026
2 hours ago
Micron drives global rally tech stock rally as traders abandon their fear of an AI bubble
InvestingMarkets
Micron drives global rally tech stock rally as traders abandon their fear of an AI bubble
By Jim EdwardsJune 25, 2026
2 hours ago

Most Popular

Now worth $200 million, Sarah Jessica Parker credits being ‘one of eight kids that struggled financially’ for her hunger, ambition, and work ethic
Success
Now worth $200 million, Sarah Jessica Parker credits being ‘one of eight kids that struggled financially’ for her hunger, ambition, and work ethic
By Orianna Rosa RoyleJune 24, 2026
1 day ago
The Pentagon said Iran War costs $29 billion, but the real cost is closer to $200 billion—and counting
Economy
The Pentagon said Iran War costs $29 billion, but the real cost is closer to $200 billion—and counting
By Jacqueline MunisJune 24, 2026
1 day ago
Amazon's record Prime Day masks a darker truth: Americans are spending more and getting less
Retail
Amazon's record Prime Day masks a darker truth: Americans are spending more and getting less
By Nick LichtenbergJune 24, 2026
21 hours ago
Ray Dalio just finished a 10-day trip to China. He says global leaders know America ‘doesn’t have what it takes to fight to maintain its empire’
Asia
Ray Dalio just finished a 10-day trip to China. He says global leaders know America ‘doesn’t have what it takes to fight to maintain its empire’
By Nick LichtenbergJune 24, 2026
23 hours ago
After forcing workers back to the office, Goldman Sachs and JPMorgan Chase are now letting their staff work remotely—but only for the World Cup
Success
After forcing workers back to the office, Goldman Sachs and JPMorgan Chase are now letting their staff work remotely—but only for the World Cup
By Orianna Rosa RoyleJune 23, 2026
2 days ago
Trump’s international student crackdown kicked off a domino effect that could shave nearly $500 billion off the economy
Economy
Trump’s international student crackdown kicked off a domino effect that could shave nearly $500 billion off the economy
By Tristan BoveJune 24, 2026
18 hours ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.