Federal Highway Spending and Revenues - Congressional Budget Office

Congressional Budget Office

January 14, 2020

Federal Highway Spending and Revenues

Transportation Research Board, 99th Annual Meeting Standing Committee on Revenue and Finance

Sheila Campbell Microeconomic Studies Division

CBO

Federal Spending for Highways

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CBO

Public Spending for Highways as a Share of GDP

Percent

1.6

1.4

1.2

1.0

State and Local Spending

0.8

0.6

0.4

0.2

Federal Spending

0.0 1956 1960 1964 1968 1972 1976 1980 1984 1988 1992 1996 2000 2004 2008 2012 2016

GDP = gross domestic product.

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CBO

Federal Spending for Highways, Adjusted for Inflation

Billions of 2017 Dollars

70 60 50 40

Adjusted With GovernmentSpecific Capital and Consumption Price Indexes

30

20 Adjusted With GDP Deflator

10

0 1956 1960 1964 1968 1972 1976 1980 1984 1988 1992 1996 2000 2004 2008 2012 2016

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CBO

Federal Spending for Highways in the Future

Policymakers could use a number of different criteria to guide decisions about how much the federal government should spend for highways.

In the Federal Highway Administration's (FHWA's) Improve Conditions and Performance Scenario, projects would be funded if their benefits met or exceeded their costs.

In the FHWA's Maintain Conditions and Performance Scenario, projects would be funded to keep overall conditions and performance unchanged by the end of 20 years.

Alternatively, policymakers could set spending equal to expected revenues in the Highway Trust Fund.

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