More Infrastructure Issues... And A National Security Threat

On top of the threat posed by the fact that we have done almost nothing to protect our railways, roadways, transportation infrastructure and chemical plants from potential terrorist attacks, we are now facing a crisis regarding our roadways in general. Our highway system is essentially fifty years old and we are only providing a minimum of repair and maintenance to keep up with the tremendous traffic growth and need for more highway lanes. While we have had some projects, like the Big Dig in Boston (which is a disastrous case of fraud and poor oversight) and the newly proposed Beltway construction, the vast majority of our roadways are severely neglected and over-burdened... and part of the blame falls to the state and federal governments for mismanaging and spending the gasoline taxes inappropriately on things other than road maintenance, as well as the tolls for toll roads.

The problem is, as CATO Institute analysts point out, that the fuel taxes have become a slush fund for pork barrel projects and special earmarks of powerful congress critters. While CATO seems to think that our highway systemm is "built" and "complete", I must protest this conclusion on the basis of having had to travel highways outside of the Beltway... Obviously the folks at CATO have not had to travel far so they think the relatively high quality roads around the metro DC area are reflective of the status of our roads nation-wide. Anyone having made a trip down I-55, I-57, I-65, I-40, US 70, US 30, US 41 or US 12/20 would clearly argue that our roads are not in good shape. But read the CATO Policy Analysis anyway to see where you think things are at the moment.

Liberating the Roads: Reforming U.S. Highway Policy

Deliberations on reauthorizing the federal fuel tax dragged on through the summer of 2004 and were not completed in the 108th Congress. Whether the fuel tax and the transportation programs it funds should be renewed is the central question of this paper.

A federal role may have been necessary to finance the Interstate Highway System in 1956—the year the federal fuel tax was enacted—but the system is now complete. The Federal Highway Trust Fund was established specifically as a means to finance highway construction. It is now a slush fund for Congress to fund programs aimed at appeasing special interests and financing non highway projects. The power of Congress to finance road projects was supposed to sunset in 1972 but instead continues to this day. In addition, federal regulations increase construction costs and stifle innovative policy experiments in the states.

Before the federal government took on the role of financing highways in 20th century, that role was assumed entirely by state governments and, before that, the private sector. This study makes the case that there is no longer any role for the federal government in the construction and financing of roads. Significant reform must include phasing down the federal fuel tax and giving back to the states full responsibility for highway programs.

Full Text of CATO Institute Policy Analysis no. 538 (PDF, 1 MB)