Rep. Earl Blumenauer Aims to Raise Fuel Tax by 15 Cents

As the House of Representatives begins to consider long-term transportation legislation, Rep. Earl Blumenauer (D-Ore.) plans to offer an amendment to the $325 billion bill that would raise the federal fuel tax by 15 cents a gallon, at a nickel a year for three years.

The current tax of 24.4 cents per gallon on diesel and 18.4 cents per gallon on gas hasn’t been raised since 1993. Blumenauer’s proposal is the same as the one that was part of the Simpson-Bowles budget reform plan that failed to earn approval in 2011. The current highway bill, which is under consideration in the House, doesn’t raise the fuel tax and only includes three years' worth of guaranteed funding.

"The bill under consideration calls for a six-year period of spending authority and hopes to be funded for three years with a combination of budget gimmicks and tax code smoke and mirrors over the next decade," Blumenauer said in a statement. "But Congress will be back to square one when that money runs out, facing an even bigger hole in the Highway Trust Fund — and once again throwing hundreds of thousands of jobs into uncertainty."

With more efficient cars using less gas, the tax only produces about $34 billion per year, leaving a revenue shortfall of about $16 billion for transportation projects. However, Congress has consistently shied away from raising the tax, even with the huge drop in fuel prices this year. Hence, 35 short-term funding extensions, the most recent of which passed last week.

Blumenauer said that it’s finally time to ask drivers to contribute more.

"A long-term transportation reauthorization should be fully funded with revenue that is sustainable, dedicated to transportation, and big enough to give states and local governments the federal partnership they need,” he said.

The House Rules Committee is scheduled to consider amendments to the highway bill Nov. 2 with the bill expected to reach the floor by the end of the week.