Highways Get Little Mention in State of the Union Address
This story appears in the Jan. 26 print edition of Transport Topics.
President Obama, in his State of the Union address, called on Congress to pass legislation that funds big-ticket infrastructure projects, which helps boost industries such as trucking and construction.
Though Obama spent little time talking about infrastructure in his speech on Jan. 20, he did stress “modern ports, stronger bridges, faster trains and the fastest Internet” are pillars of a society determined to be economically prosperous. He then challenged members of Congress to not focus on just one infrastructure project — mainly the Keystone XL pipeline — but to approve legislation that upgrades infrastructure networks in cities and states.
“Democrats and Republicans used to agree on this. So let’s set our sights higher than a single oil pipeline. Let’s pass a bipartisan infrastructure plan that could create more than 30 times as many
jobs per year, and make this country stronger for decades to come,” Obama said.
He also referred to the White House’s four-year legislative proposal that relies on corporate tax reform to come up with money for transportation: “Let’s close loopholes so we stop rewarding companies that keep profits abroad, and reward those that invest in America. Let’s use those savings to rebuild our infrastructure and make it more attractive for companies to bring jobs home.”
The president also credited lower gas prices and higher fuel standards for helping the “typical family this year” save $750 at the pump. Days earlier, the administration unveiled a plan that would tap the private sector for funds with the objective of raising capital for infrastructure projects. Specifically, the Qualified Public Infrastructure Bond proposal would give public-private partnerships, or P3s, access to low interest rates and the tax benefits of municipal bonds.
In Congress, Republican leaders who control both chambers, plan to send the White House legislation that would approve the Keystone oil pipeline — a proposal that drew a veto threat.
Moreover, congressional leaders have yet to say how they plan to reauthorize highway programs and fund surface transportation projects nationwide before a 2012 transportation law expires in May.
There are myriad ways policymakers could fund highway projects, but not one has garnered sufficient support. Large firms, many transportation groups and industry advocates such as American Trucking Associations would support raising fuel taxes.
But increasing the federal 18.4-cents-per-gallon gasoline tax and 24.4-cents-per-gallon diesel tax — not done since 1993 — is unpopular with the administration and most lawmakers.
In a speech hours before the start of the State of the Union, Sen. Orrin Hatch (R-Utah) told a crowd at the U.S. Chamber of Commerce in Washington “a gas tax increase is very unlikely.”
“I believe we can find other solutions,” said Hatch, who is expected to come up with a transportation-funding proposal this year as chairman of the influential tax-writing Finance Committee.
Senate Appropriations Committee ranking Democrat Barbara Mikulski of Maryland said she was supportive of the president’s infrastructure proposal: “That revenue will fund investments in rebuilding American infrastructure, including our roads, bridges, ports and clean-water plants, creating construction jobs today.”
But ATA expressed disappointment with the president’s speech, saying he failed to more fully flesh out a vision for a well-funded, long-term highway bill.
“Just mentioning infrastructure is not a solution to our nation’s critical needs, and by simply bringing the topic up without details, President Obama missed an opportunity to underscore the critical role our highway system plays in our economic well-being,” ATA President Bill Graves said.
Other groups said the president’s remarks sparked a degree of optimism. Robert Stevens, president of the American Society of Civil Engineers, applauded Obama for at least addressing the need to fund infrastructure projects.
“There is a public-funding crisis in this country as it relates to our nation’s aging roads and bridges,” Stevens said in a statement. “States and localities cannot shoulder the burden of rebuilding America alone. They need a strong federal partner and robust, multiyear legislation to deliver transportation projects and keep America moving.”
Patrick Jones, executive director of tolling advocate International Bridge, Tunnel and Turnpike Association, added that Congress needs to examine all revenue sources to approve sustainable ways to build, maintain and reconstruct infrastructure. A significant part of the freight and trucking industry is opposed to expanding the use of tolls.
Jones said his group urges the president and Congress to “work together to provide states with greater flexibility to meet their individual transportation funding needs — including the right to use tolling on their existing interstate highways for the purpose of reconstruction.”
