The new principle, on the other hand, is what has brought the United States to the brink of insolvency: Spend what you want, and if the usual funding sources - in this case, the fuel taxes that replenish the trust fund - aren't sufficient, dip into general revenues to make up the difference.
This would allow Congress to spend freely on transportation without having to vote for tax increases to provide the required revenues.
Besides the budget considerations, the move from "user pays" to "taxpayer pays" would have another significant consequence: It would further politicize highway spending, making decisions more dependent on political preferences than on consumer choice.
The current highway law, known formally as the Safe, Accountable, Flexible, Efficient Transportation Equity Act, was passed in August 2005. It authorized federal surface transportation programs, including highways, highway safety, and mass transit, from that year through 2009. It has been extended eight times since then, with the current extension due to expire on March 31. With an election ahead, and the House and Senate in disagreement over how to proceed, another extension is likely.
The Senate Environment and Public Works Committee has approved a new bill authorizing some $109 billion in spending in fiscal years 2013 and 2014. The House Transportation Committee's bill would authorize some $230 billion to $285 billion over six years. In both cases, expected fuel-tax revenues would not cover the full cost, and general tax revenues would make up the difference.
Local roads
While other differences may remain, there is a solution to the funding dilemma: Congress could get out of the business of transportation financing altogether, wind down the Highway Trust Fund, and leave highway financing and decision-making to states, local authorities, and private entities.
