Region Forward Blog

How to fund transportation?

Jan 6, 2011


Debate has broken out on Capitol Hill regarding the proper way to fund transportation. As concerns about government spending and the federal deficit persist some leaders are arguing that any investment in transportation must be paid for by revenues collected through the fuel tax rather than being paid for by borrowing (despite the fact that a new report shows that the fuel tax has proven woefully inadequate for funding transportation particular roads over the past 60 years). Others contend that investment in transportation is necessary whether or not it comes from borrowed money because it creates jobs and provides the infrastructure necessary to remain competitive.

This debate has already created some strange bedfellows. According to the National Journal the U.S. Chamber of Commerce which supports Republican candidates at a much higher rate than Democratic ones is opposed to the new GOP House Leadership’s plan to for changing the rules to limit how the highway trust fund is used in spending bill. They are being joined in their opposition by the Laborers International Union of North America part of the AFL-CIO that overwhelmingly supports Democrats. You can see how various experts approach the debate over at the National Journal and then tell us what you think here at The Yardstick.

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