We support the VMT fee because it meets the challenges of the 21st century far more effectively than the fuel tax does.Ī VMT fee more accurately reflects who is using public roadways and assesses the cost of repair accordingly.
NTU has supported replacing the federal fuel tax with a VMT fee before, and we continue to support the initiative now. This is a very encouraging item from an otherwise murky package. A pilot program studying potential pitfalls and benefits of a VMT fee will enable the government to understand this policy in depth before it is enacted on a large scale. With the rise of electric vehicles and more fuel efficient cars, the current federal excise tax on gasoline is no longer a true user fee model and should be replaced with a VMT fee. It’s more important than ever that Congress begin the work of transitioning away from the federal fuel tax (the main source of revenue for the HTF). The proposal also includes funding for state governments to run similar pilot programs and updates cybersecurity for the project. This program would both test collection mechanisms and help determine the ability of a VMT fee to adequately fund the Highway Trust Fund (HTF) as a replacement for the federal fuel tax. Specifically, Section 5402 directs the Department Of Transportation to establish a pilot program including commercial and passenger vehicles from all fifty states to implement and test the operability of a national VMT user-fee. Weighing in at 1249 pages, there is far too much in this package to cover in one blog post, so today we will highlight one item that we find encouraging: the VMT fee pilot program.
Despite infrastructure reauthorizations typically being a bipartisan affair, the INVEST In America Act is strikingly partisan and includes earmarks, new railroad regulations, and expensive Buy America provisions. It is also a surface transportation reauthorization bill which funds many infrastructure and transportation programs for the next five years. This is the first legislative text that has been published as a part of Biden’s proposal. Payne (D-NJ) introduced the INVEST in America Act last week and holds portions of President Biden’s American Jobs Plan.
#Federal vmt tax full#
NTU strongly opposed this legislation ahead of Wednesday’s vote and plans to continue our opposition as it makes its way to the House floor for a full vote.Ĭommittee Chairman DeFazio (D-OR), along with Del.
As we noted in the lead up to the Committee markup, the “INVEST In America Act'' contains job-crushing regulations and wastes billions of taxpayer dollars on Green New Deal-style projects. Last week, the House Transportation and Infrastructure Committee approved a deeply-flawed $547 billion surface transportation reauthorization bill.
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