Skip to main content

US president-elect Obama and the future of America's roads

The current US transportation funding law expires in September 2009. The current law allocates US$286 billion to highway and transportation projects. However, simply re-authorising the same amount will not be sufficient to build, maintain and improve the nation's roads, bridges, airports, and other deteriorating infrastructure. The backlog of projects unaddressed has swollen to the point where the American Society of Civil Engineers (ASCE) says it will take $1.6 trillion to address the country's road and in
July 18, 2012 Read time: 4 mins
WH ND 08 P 23 avatar

The current US transportation funding law expires in September 2009. The current law allocates US$286 billion to highway and transportation projects. However, simply re-authorising the same amount will not be sufficient to build, maintain and improve the nation's roads, bridges, airports, and other deteriorating infrastructure.

The backlog of projects unaddressed has swollen to the point where the 2600 American Society of Civil Engineers (ASCE) says it will take $1.6 trillion to address the country's road and infrastructure needs. The cost is so high due in part to the decrease of federal funding. According to Building America's Future, 50 years ago 10% of non-defense spending was allocated annually to infrastructure. Today, it is below 4%.

During his campaign, president-elect Barack Obama made clear statements that he understands the investment needs of America's roads and bridges.

 In his speech before the US Conference of Mayors in June, senator Obama said, "When it comes to rebuilding America's essential but crumbling infrastructure, we need to do more, not less. Maintaining our levees and dams isn't pork barrel spending, it's an urgent priority, and that's what we'll do when I'm President. The work will be determined by what will maximize our safety, security, and shared prosperity." When asked by the 5286 American Automobile Association (AAA) how he would fund the nation's transportation infrastructure needs, Obama said: "I will work to reform the federal transportation funding process, and also create a new national infrastructure reinvestment bank to invest $60 billion in additional direct federal funding over 10 years into our transportation infrastructure. The bank will use this $60 billion to leverage private and public capital to spur even more investments into our infrastructure. I will pay for this plan by using a small amount of the proceeds associated with winding down the war in Iraq." In addition, Obama says he will create a $25 billion emergency Jobs and Growth Fund to replenish the Highway Trust Fund, prevent cuts in road and bridge maintenance, and fund school repairs. The Highway Trust Fund is funded by the federal gas tax, which is currently at 18.4 cents/gallon on gasoline and 24.4 cents/gallon on diesel.

This tax has not changed since 1993 and has not kept pace with the rate of inflation. And with US drivers buying less fuel, the Highway Trust Fund is virtually an empty wallet.

While the President-elect supports increased spending, it is still a far cry from the levels needed to restore America's roads and infrastructure. Yet, Obama has made it clear he is aware of the poor state of the nation's infrastructure and has claimed, quite strongly, that he plans to invest, creatively and aggressively, in the future of the American infrastructure.

 In that same interview with AAA, Obama said, "Washington, DC, has not only provided too few resources to maintain our existing infrastructure, but also paid little attention to building new infrastructure to accommodate a growing population and the demands of a 21st-century economy... That is simply unacceptable both for the safety of the American people and the continued growth of our economy."

And clearly the American public is in support of increased spending as well. According to the American Road & Transportation Builders Association (ARTBA), most voters overwhelmingly said "yes" to measures that would increase their tax burden to fund transportation improvements. In total, the measures would generate more than $71

billion in new revenue for transportation infrastructure work.

ARTBA tracked 37 state and local transportation funding-related ballot initiatives in 17 states. Of the 37 measures, 32-or 86%-asked voters to initiate, extend or increase taxes, or approve bonds to fund transportation improvements.

Twenty-five-78% of the bond and tax measures-were approved with an average vote of 63%.

On January 20th 2009, president-elect Barack Obama will be sworn in as the 44th President of the United States. As he has claimed throughout his campaign, Obama understands the critical need for increased and innovative financing. The 2462 IRF will work with its national associations and representatives in the United States to ensure roads and bridges remain a top priority for the new Obama administration.

For more information on companies in this article

Related Content

boombox1
boombox2