Legislation introduced last month in the U.S. House of Representatives to cut the federal motor fuels tax, the source of 43 percent of all highway capital improvement funding, would have a devastating impact on state transportation improvement programs, according to analysis by the American Road & Transportation Builders Association (ARTBA).

On April 24, Rep. James Sensenbrenner (R-Wis.) introduced a bill to suspend the entire federal motor fuels tax for six months and permanently repeal 4.3 cents per gallon of the tax.

The 1998 Transportation Equity Act for the 21st Century (TEA-21) directly links federal highway investment to Highway Trust Fund receipts. Utilizing Federal Highway Administration apportionment formulas and historic revenue and collection data, ARTBA’s analysis of the bill shows that it would cut federal investment in state highway improvements by $6.7 billion in 2003, $8. 8 Billion on 2004, and $5 billion thereafter.

According to ARTBA, California would lose the most federal support--$600 million in 2003. Other states that ARTBA says would experience major reductions in federal highway investment include Texas ($500 million), New York ($338 million), Pennsylvania ($338 million), Florida ($313 million), Illinois ($224 million), Georgia ($233 million) and Wisconsin ($131 million).

"Repealing or reducing the federal motor fuels tax would delay important transportation improvement projects and rob the nation of air quality benefits that accrue from less congested and well-maintained highways," said ARTBA president Pete Ruane.

The federal gas tax, which has not been raised since 1993, is not the reason for the recent increase in gas prices, Ruane said. It is widely understood that the recent rise in gasoline prices is due to a shortage of refinery capacity in the United States, the seasonal changeover to cleaner gasoline required by the Clean Air Act and distribution limitations.

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