ATA Presses DOT on Stalled Mileage-Based Fee Study

The American Trucking Associations (ATA) has expressed strong concerns regarding delays in establishing a special advisory board aimed at addressing the declining revenues for federal surface transportation, which have been affected largely by increased fuel efficiency in light-duty vehicles. They highlighted that the Infrastructure Investment and Jobs Act mandated the formation of this advisory board within 90 days of enactment, a deadline that has already been missed in February 2022. Although a notice for board member nominations was issued in October 2023, no appointments have been made yet. The ATA warns that if the pilot program intended to assess the viability of a national per-mile user fee is not conducted soon, Congress may lack critical data to evaluate this funding approach. They stressed that the Highway Trust Fund, which has relied on transferring general funds to remain solvent since 2008, could face insolvency as early as 2028 if proactive measures are not taken. This situation is particularly pressing as states rely heavily on these funds for prolonged projects, which are now threatened due to expected revenue declines from gas taxes affected by the shift toward fuel-efficient vehicles. The ATA has urged the transportation secretary, Pete Buttigieg, to expedite the formation of the advisory board, which is expected to provide critical recommendations and insights into developing a mileage-based user fee system. In the transportation field, timely action is crucial to maintain and improve infrastructure funding methodologies. The increasing fuel efficiency of vehicles poses a significant challenge to revenue models that have traditionally depended on fuel taxes. The rapid evolution of transportation technology necessitates innovative funding solutions, such as distance-based user fees, that can adapt to changes in vehicle fleet efficiency. Implementing such strategies will require robust data and public confidence, highlighting the importance of the advisory board’s work and the urgency of its formation. Without decisive steps now, the future reliability of the Highway Trust Fund and essential infrastructure projects could be jeopardized.