Presented as a highway funding solution, Rep. Earl Blumenauer (D-Ore.) introduced into the House today a bill that if enacted would institute a 15-cent increase per gallon in fuel taxes.
Blumenauer says the U.S. needs to transition to a stable and long-term funding source, but the 15-cent increase in fuel taxes could be a short-term option for battling the dwindling Highway Trust Fund.
The bill, dubbed the UPDATE Act, is based on recommendations from the Simpson-Bowles report, the National Surface Transportation Policy and Revenue Commission and the National Surface Transportation Financing Commission.
The fuel tax hikes would be phased in starting next year and attaches fuel taxes to inflation. It then would replace the gas tax with a more stable source of funding by 2024.
The American Trucking Associations supports the bill, saying it is an attempt to address the country’s “woefully underfunded” roadways.