CAGW Brief Details Flawed Transportation Policy

Highway Bill to be Released Today

(Washington, D.C.) - Citizens Against Government Waste (CAGW) today released an issue brief on transportation policy that coincides with the announcement of a conference agreement on the $286.5 billion Transportation Equity Act — A Legacy for Users (TEA-LU).  The issue brief, titled Transportation (In)Equity Act: A Legacy for Losers (Taxpayers), showcases the highway bill as Exhibit A in the federal government’s flawed transportation policy and proposes solutions for getting highway spending under control. 

“The highway bill is a fiscal car wreck,” CAGW President Tom Schatz said.  “The sweet smell of pork has blinded members of Congress to the waste and inefficiency of federal transportation policy.”

CAGW’s issue brief explains how the gas tax evolved from a temporary measure to fund the construction of a national highway system to an inexhaustible spigot for members of Congress to pump tax dollars to pork projects in their home districts.  The gas tax has morphed from 3 cents per gallon in 1956 to 18.4 cents today.  Far from being a user fee for road travelers, the Highway Trust Fund pays for museums, bus stops, bike trails, and mass-transit boondoggles all over the country.  There is little vetting of projects for national importance as highway money is doled out based on political favoritism.  The disparity between a large number of donor states, those that pay more in highway taxes than they receive in funding, and a small number of recipient states also contributes to the wasteful process. 

“The congressional boasting about projects and jobs is smog that obscures a huge taxpayer rip-off,” Schatz continued.  “The federal government is handling duties that could be better performed by the states.  By drastically reducing the federal gas tax, Congress could give state governments more room to adjust gas taxes and transportation spending to fit the unique circumstances of each state.” 

After TEA-21 expired on September 30, 2003, President Bush requested $256 billion (the amount collected by the gas tax) for the new six-year reauthorization while the House requested $375 billion and the Senate requested $318 billion.  The House compromised with the President on a price tag of $284 billion.  CAGW’s issue brief explains how Rep. Jim Clyburn (D-S.C.) could include $25 million in the House version of TEA-LU for the Briggs-Delaine-Pearson Connector, a.k.a. the “Bridge to Nowhere.”  The bridge will connect two rural counties in South Carolina over the Santee River, despite the fact that another bridge already exists 10 miles down the river and the states’ roads are in much need of repair.  The project received $34 million in federal funds before TEA-LU, and transportation officials estimate that it will require $110 million to complete.

Transportation (In)Equity Act: A Legacy for Losers (Taxpayers) can be found here. 

Citizens Against Government Waste is the nation's largest nonpartisan, nonprofit organization dedicated to eliminating waste, fraud, abuse, and mismanagement in government.

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