Highway construction and maintenance workers implementing crucial infrastructure projects.
Washington, D.C., August 14, 2025
Rep. Sam Graves has outlined four essential priorities for the upcoming surface transportation reauthorization bill as Congress prepares to address funding and key focuses for highway and transit infrastructure projects. With projections indicating potential insolvency of the Highway Trust Fund by 2028, lawmakers are urged to prioritize formula funding, streamline permitting processes, increase state flexibility, and identify new revenue sources. Environmental review reforms and alternative funding mechanisms, such as vehicle-miles-traveled fees, are also considered crucial for ensuring robust infrastructure support in the years to come.
As Congress begins developing the next surface transportation reauthorization bill, Rep. Sam Graves, chair of the House transportation and infrastructure committee, has outlined four essential goals. This bill sets the funding levels and priorities for highway and transit infrastructure projects over the coming years, with lawmakers tasked to pass it by the deadline of September 30, 2026, to ensure further federal support. With the Highway Trust Fund projected to become insolvent by 2028, urgency has been placed on establishing sustainable funding mechanisms for necessary infrastructure projects.
The U.S. Department of Transportation (DOT) and various lawmakers are finding common ground with construction industry groups about the direction of upcoming funding priorities. Major construction organizations have emphasized the importance of prioritizing formula funding instead of discretionary grant programs when allocating resources. Formula funds provide a more efficient method for distributing financial support to states, enabling swifter project execution.
The last surface transportation bill, known as the 2021 Infrastructure Investment and Jobs Act, allocated over $560 billion to the DOT, which included a substantial $305 billion earmarked specifically for a five-year surface transportation reauthorization. However, discretionary grant funding has often been slow to disburse, illustrating the need for a strategic focus on formula funding, as noted by industry experts.
Rep. Graves’ four key priorities for the upcoming legislation include:
Within this framework, industry groups are pushing for an expanded adoption of NEPA Assignment, which allows states to handle National Environmental Policy Act reviews. Currently, only eight states have utilized this, but those have reported marked improvements in project delivery times. Coordinated efforts between the DOT and state transportation departments aim to accelerate project timelines and reduce costs further.
The primary funding for the Highway Trust Fund stems from federal gas taxes, which have not been raised since 1993. To better sustain revenue capabilities, Graves has suggested new avenues, such as registration fees on electric and hybrid vehicles. Legislative groups are urging that existing funding levels not only be maintained but increased to address inflation. The American Public Transit Association has presented a proposal requesting $138 billion for public transit and $130 billion for passenger rail infrastructure over the next five years.
Additionally, members of the civil engineers’ association propose indexing transportation user fees to inflation, ensuring that purchasing power does not wane over time. Alternative funding sources under consideration include vehicle-miles-traveled fees, which would supplement existing gas tax revenue alongside electric vehicle fees. As the complexity of securing sustainable funding for transportation projects continues to grow, it remains a pressing concern for both lawmakers and the construction industry.
The forthcoming surface transportation reauthorization bill represents a critical opportunity for Congress to address pressing infrastructure needs while solidifying the financial underpinnings of the Highway Trust Fund. With a focus on efficiency, flexibility, and innovative funding solutions, it promises to define the transportation landscape in the United States over the next several years.
The surface transportation reauthorization bill determines funding levels and priorities for highway and transit infrastructure projects in the United States for several years.
The bill must be passed by September 30, 2026, before the expiration of the previous authorization.
Formula funding is a method of allocating funds based on predetermined criteria, which tends to be more efficient than discretionary grants, which are given for specific projects and can be slower to process.
The Highway Trust Fund is projected to reach insolvency by 2028, raising concerns about the long-term viability of funding for transportation projects.
Proposals include registration fees on electric and hybrid vehicles, vehicle-miles-traveled fees, and indexing transportation user fees to inflation.
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