What happened: Senate Finance Committee Chairman Ron Wyden (D-Ore.) and senior GOP committee member John Cornyn (R-Texas) both offered freight user fees as an option to raise revenue to support increased surface transportation investment. While a number of alternatives were proposed by senators during a May 18 hearing on paying for infrastructure improvements, a freight fee—such as a heavy truck mileage tax—was the only alternative raised that could generate significant revenue, attract bipartisan support, and is based on system use. Other infrastructure revenue proposals discussed included various bonding initiatives, increasing the overall corporate income tax rate, and electric vehicle user fees.
Not surprisingly, members of the trucking industry are attempting to head off a freight user fee, but senators on the committee have been aware of those concerns for more than a year.
Why it matters: The hearing demonstrates senators are seriously considering options to pay for an infrastructure bill. The Senate Finance Committee has jurisdiction over Highway Trust Fund revenues, as well as nearly all other tax and bonding proposals, so enactment of any surface transportation reauthorization law or broader infrastructure package will include a section authored by this panel.
What’s next: Congressional Republicans, Democrats, and White House officials continue to negotiate on the size, scope and financing of an infrastructure package that may include reauthorization of the surface transportation programs. Parties are operating under a self-imposed Memorial Day deadline to reach a bipartisan agreement. Regardless of whether an accord is reached, members on both sides of the aisle are aware of the Sept. 30 expiration of surface transportation programs.
ARTBA continues working with all members of Congress to generate the new user fee revenue necessary to grow highway and public transportation investment.
