Transportation disrupted: Rethinking how we pay for it

In an earlier installment of this blog series, we explored the mounting transportation costs that Americans face, which are now exacerbated by rising gas prices. Efforts to provide relief through gas tax holidays—first in certain states, then nationally—show just how fragile our system is. These temporary measures offer minimal relief while undermining the very foundation of our transportation funding.

Federal bill continues support for transportation programs

The new federal “omnibus” appropriation bill, enacted March 23, provides over $86 billion for the U.S. Department of Transportation, a record funding amount and an increase of almost $10 billion from U.S. DOT’s FY ‘17 funding levels. Road, transit, and rail programs all see funding increases. The FY 18 funding levels show Congress’s commitment to robust federal investment for important state and local infrastructure projects.

Oregon leads the way in addressing transportation funding challenges

Many states are facing the same challenges as the federal government, with decreasing buying power from gas tax collections and little political support for raising the tax. Oregon has decided to take steps to circumvent the transportation funding cliff by implementing a pay-per-mile program that will launch in July 2015. A new report by ODOT describes Oregon’s evolving pay-per-mile fee.