Industry leaders and advocates converged on Washington D.C. this week for the National Transportation Summit, a pivotal gathering aimed at broadening the support base for the next highway reauthorization bill. With MAP-21 (Moving Ahead for Progress in the 21st Century) set to expire on October 1, 2014, the summit addressed the enormous challenge of convincing Congress to pass a bipartisan transportation bill that meets the country’s deteriorating infrastructure needs. Understanding the Transportation Engineering Principles of Highway Design Pavement Systems is fundamental to grasping why stable, long-term funding matters for every road, bridge, and transit project across the nation.
The summit, sponsored by the American Highway Users Alliance and Volvo Group North America, brought together a broad coalition of stakeholders including manufacturers, retailers, trucking industry representatives, state transportation officials, and members of Congress. The central question was clear: how can the transportation industry build the political will and public understanding needed to secure sustainable funding for America’s next highway bill?
1. The Funding Crisis Facing the Highway Trust Fund
The most pressing issue at the summit was the precarious state of the Highway Trust Fund (HTF). Revenues from existing federal highway user taxes are insufficient to maintain current levels of investment in roads and public transportation. Projections from the Congressional Budget Office (CBO) indicated that the trust fund would be unable to support any new obligations for highway and transit improvements by fiscal year 2015. All revenues collected that year would be needed just to pay existing obligations.
1.1 The Shortfall Explained
The federal gas tax, the primary revenue source for the HTF, has not been raised since 1993. Over the intervening decades, inflation has eroded its purchasing power, while improvements in vehicle fuel efficiency have reduced per-mile tax collections. This structural deficit makes it impossible for the current funding mechanism to sustain the infrastructure investment the nation requires.
Senator Barbara Boxer, Democrat from California and Chairman of the Senate Environment and Public Works Committee, opened the summit by declaring bluntly: “Our infrastructure is in trouble. We have a huge job ahead of us.” Her assessment underscored the bipartisan recognition that the status quo is unsustainable.
1.2 The Consequences of Inaction
Without a long-term stabilization of the HTF’s revenue foundation, the consequences would be severe. States would face drastic reductions in federal highway funding, forcing delays or cancellations of critical infrastructure projects. The ripple effects would extend across the economy, affecting construction employment, supply chain efficiency, and public safety. As one industry expert at the summit put it, the nation faces a “funding cliff” in 2015 if Congress fails to act.
2. Building a Broader Coalition for Transportation Investment
A key theme of the summit was the need to expand the coalition of stakeholders advocating for increased transportation investment. Historically, highway and transit funding has been driven primarily by construction industry groups and transportation departments. The summit organizers deliberately invited representatives from sectors not traditionally at the center of transportation advocacy.
2.1 Voices from Manufacturing, Retail, and Trucking
Jay Timmons, president and CEO of the National Association of Manufacturers (NAM), delivered a sobering assessment: “Congress is not educated on the importance of improving the infrastructure. That body needs to see and understand the value of a modern, efficient transportation network that will increase productivity and better the economy.” His message reinforced that failing infrastructure is not solely a construction industry problem, but a competitiveness issue that affects every sector of American business.
Matthew Shay, president and CEO of the National Retail Federation, agreed that infrastructure investment is treated as a “second tier” issue in Congress. He urged advocates to “hold the members’ feet to the fire” to secure sustainable funding. The retail perspective highlighted how transportation infrastructure directly impacts supply chain costs, consumer prices, and the efficient movement of goods from ports to store shelves.
Former Kansas Governor Bill Graves, president and CEO of the American Trucking Association, framed the issue in terms of public understanding: “Most Americans are not naive enough to think you can get something for nothing. Unfortunately there are some that think you can get something for nothing, and they have been elected to Congress. These infrastructure deniers will have to listen to the American people, who are willing to pay more if they understand the problem.”
2.2 Educating Congress and the Public
Congressman Bill Shuster, Republican Representative for Pennsylvania and Chairman of the House Transportation and Infrastructure Committee, emphasized that transportation is a core function of the federal government. He argued that building public awareness is the first step toward securing funding.
“We need to build a case for the American people that there is a problem and it affects them directly,” Shuster said. “If we make the case, funding will be a by-product.” He cited examples of states that grew frustrated with federal inaction and implemented their own funding solutions, including:
- California raising its gas tax and implementing cap-and-trade revenue for transit
- Indiana leveraging public-private partnerships (P3s) for major highway projects
- Minnesota enacting transportation funding packages with bipartisan support
- Michigan increasing fuel taxes and vehicle registration fees for road repairs
“These states built a case and sold it to the people that there was a problem that needed to be solved,” Shuster noted. “And the people voted to raise taxes and solve the problem. If they know how it affects them, they will find a way to fix the problem.”
3. State-Level Innovation: Virginia’s Funding Model
One of the most discussed success stories at the summit was Virginia’s comprehensive transportation funding reform. Sean Connaughton, Virginia’s Secretary of Transportation, detailed how the state transformed its approach to infrastructure financing by running the legislative effort like a political campaign.
3.1 How Virginia Reformed Its Transportation Funding
Virginia eliminated its statewide 17.5 cents-per-gallon motor fuels tax entirely. In its place, the state implemented a multi-pronged funding strategy:
- A new wholesale tax of 3.5 percent on gasoline and 6 percent on diesel
- An increase in the state’s general sales tax
- An additional 2.1 percent sales tax on gas purchases in the Washington suburbs and Tidewater area
- A $64 annual fee for drivers of electric and hybrid vehicles
This approach was designed to create a more stable and growth-oriented revenue stream. Unlike a fixed per-gallon tax that erodes with inflation and fuel efficiency gains, a percentage-based wholesale tax automatically adjusts with fuel prices and economic growth.
3.2 Results on the Ground
The results speak for themselves. Connaughton reported that Virginia typically allocated $200 to $250 million annually for paving projects. Under the new funding framework, the state achieved $500 million in paving in a single year, with at least $500 million scheduled annually for the foreseeable future. “We will have all our primary and secondary roads up to standard in the next few years,” he said. “That is what I call a success.”
Senator Boxer suggested that Virginia’s model, particularly the wholesale sales gas tax approach, could serve as a template for replacing the federal gas tax. The Virginia example demonstrated that even in a politically conservative state, a well-communicated infrastructure funding plan could earn bipartisan support and public backing, even during an election year.
3.3 Key Takeaways from State-Level Funding Approaches
| Funding Approach | Examples | Key Advantage |
|---|---|---|
| Fuel tax increase | California, Michigan, Minnesota | Direct user fee, familiar mechanism |
| Wholesale fuel tax | Virginia | Automatic inflation adjustment, stable revenue |
| Public-private partnerships (P3s) | Indiana, Virginia | Leverages private capital, transfers risk |
| Sales tax allocation | Virginia, Missouri | Broadens revenue base beyond fuel users |
| Tolling | Various states | Direct user pays, congestion management |
| Vehicle registration fees | Michigan | Captures all road users including EV drivers |
4. Legislative Solutions and the Path Forward
The summit also showcased new legislative approaches to infrastructure financing. Congressman John Delaney, Democratic Representative for Maryland, presented the Partnership to Build America Act (PBAA), a bill designed to leverage federal resources more efficiently.
4.1 The Partnership to Build America Act
The PBAA (HR 2084) proposed the establishment of the American Infrastructure Fund, a $50 billion entity that would provide loans and loan guarantees to states and local governments for infrastructure projects spanning education, water, transportation, communication, and energy. The fund would be capitalized through the repatriation of overseas corporate earnings via a one-time sale of 50-year bonds.
Delaney emphasized that acting primarily as a bond guarantor, the fund could leverage $50 billion into as much as $750 billion in infrastructure financing capacity. “Even the most conservative estimates of jobs created by infrastructure spending confirm that $750 billion would result in millions of jobs,” he said. Notably, this was the first infrastructure financing bill introduced in the House in 15 years to attract bipartisan support, with 25 Republicans and 25 Democrats co-sponsoring the legislation.
4.2 The Role of Comprehensive Highway Engineering Knowledge
Effective transportation policy depends on sound engineering principles. For civil engineering students and industry professionals, understanding the full spectrum of highway design and construction is essential. Resources like Transportation Engineering Highway Design provide foundational knowledge for designing roads that meet modern safety, capacity, and durability standards. Similarly, familiarity with Highway and Bridge Construction Equipment Specialized Machinery for gives project managers insight into the equipment and methods that translate funding into completed infrastructure.
For students entering the field, Transportation and Highway Engineering Project Topics for Civil offers a pathway to explore critical topics that connect policy decisions with real-world engineering outcomes.
4.3 A Unified Path Forward
The summit concluded with a clear message: the transportation industry must work together to educate both Congress and the public about the stakes of infrastructure underinvestment. The coalition must extend beyond traditional construction and transportation groups to include manufacturers, retailers, trucking, and state governments. As Bill Graves of the American Trucking Association summarized: “We may have to raise the federal gas tax; tolling is not the answer, it is part of the solution. And that is what we have to find a solution to this problem.”
The path to a fully funded, bipartisan highway bill requires demonstrating to every American that infrastructure investment is not an abstract policy debate, but a practical necessity that affects daily life, economic competitiveness, and public safety. The National Transportation Summit marked an important step in broadening the support base needed to achieve that goal.