The Alarming Effect of Federal Cuts on Transportation

Yesterday supporters around the nation took to Twitter and attended rallies demanding Congress to #StandUp4Transportation. Meanwhile, some Republican lawmakers are pursuing an approach called "devolution" that would possibly wipe out the federal gas tax, leaving states to find ways to raise transportation revenue on their own. 16 states have already made moves to raise their transportation revenues since 2012, which is why some Congress members feel this is a viable solution, Transportation for America reports. However taking away federal support could be debilitating for transit agencies, taking about 43% of their capital funding, and forcing governors and lawmakers to decide between mega tax hikes or forgoing repairs and investment. Here's a look at the potential fallout:

  1. 19 states would have to raise their gas taxes by 25 cents/gallon or more, rather than the current 18.4-cent federal rate.

  2. Vermont would need to raise its gas tax by 50 cents/gallon to break even.

  3. New York would need to raise its tax by 40 cents.

  4. Missouri, one state already raising funds to get out of a large budget hole, would need to raise $144M a year more.

  5. New Jersey would need to find an additional $373.6M.

  6. California would lose almost $1B. [T4A]

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