Skip to contentU.S. Department of Transportation/Federal Highway Administration

Highway Taxes and Fees 2008

Provisions Governing the Allocation of Federal Funds for Highway Purposes

Based on information obtained from state authorities and on the law of the states

Table F-106

Status as of January 1, 2008

Name of Fund or Agency (1) Amount or Proportion (2) Objects of Expenditure (3) Remarks (4)
Federal Exciste Taxes on Motor Fuels
Gasoline and gasohol18.4 The rates shown are for highway use of motor fuel. See table FE-21B for more detail on the rates and application of highway fuel taxes.
Diesel24.4
Special Fuels:
General rate18.4
LPG18.3
LNG24.3
M85 (from natural gas)9.25
CNG18.3
      The SAFETEA-LU authorized a total of $244 billion for highways, highway safety and transit.
Internal Revenue ServiceAmount requiredPayment of refunds.Refunds are for exempt uses such as farming, or to exempt users such as State and local governments and educational and nonprofit institutions.
Leaking Underground Storage Tank Fund0.1 centProvides funds for responding to releases from leaking underground storage tanks.Funds are allocated to the States through cooperative agreements to clean up those sites that pose the greatest threat to human health and the environment. Funds can be used for State-led cleanups and for State oversight of responsible party cleanups.Program is administered by the Environmental Protection Agency (EPA)
Aquatic Resources Trust Fund, Boat Safety Account See remarksProvide boat safety education and enforcement, search and rescue, provision of public access sites for recreational boaters, waterway markers and other aids to navigation, State recreational vessel numbering and titling programs. (46 U.S.C. 203)
Account
Land and Water Conservation Fund $1,000,000For planning, acquisition, and development of outdoor recreation areas and facilities.This amount is available after the maximum transfer to the Boat Safety Account has been made.
Aquatic Resources Trust Fund, Sport Fish Restoration Account RemainderTo aid the States in fish restoration and management projects and to carry out the purposes of the Coastal Wetlands Planning Protection and Restoration Act.
Aquatic Resources Trust Fund, Sport Fish Restoration AccountTax on gasoline used in small enginesTo carry out the purposes of the Coastal Wetlands Planning Protection and Restorations
Federal Highway Trust Fund, Mass Transit Account2.86 centsMade available through the programs of the Federal Transit Administration for mass transit capital projects (26 U.S.C. 9503(e)).
Federal Highway Trust Fund, Highway AccountRemainderFinances the Federal-Aid Highway Program. After 1.5 percent deducted from specific authorizations for administration of the Federal-aid highway program and the Federal highway research and technology program, a set aside not to exceed 1 percent from certain authorizations is made for metropolitan planning (23 U.S.C.
FEDERAL EXCISE TAXES ON MOTOR VEHICLES
Federal Highway Trust Fund, Highway AccountAllFinances the Federal-Aid Highway Program. After 1.5 percent deducted from specific authorizations for administration of the Federal-aid highway program and the Federal highway research and technology program, a set aside not to exceed 1 percent from certain authorizations is made for metropolitan planning.Fund also receives proceeds from Federal excise taxes on truck chassis, tires, and use. See table FE-21B for more details. After administrative deduction and other set asides, not more than 2 percent of remaining authorizations may be expended for State
U.S. DEPARTMENT OF TRANSPORTATION
Federal Highway AdministrationFY 2008 Authorization Amounts:Administers Federal-aid highway program. After 1.5 percent deducted from specific authorizations for administration of the Federal-aid highway program and the Federal highway research and technology program , a set aside not to exceed 1 percent from certain authorizations is made for metropolitan planning.
Federal Highway Trust Fund, Highway Account:
National Highway System (NHS) Program6,207,937,450To reimburse the States and the District of Columbia for the Federal share of right-of-way, engineering, and construction on NHS projects in rural and urban areas. Funds may be used to pay up to 90 percent of the cost of improvements, except in the public lands States where a greater Federal participation is allowed, but not to exceed 95 percent.
Surface Transportation Program (STP)6,472,726,628This program includes: construction, reconstruction, rehabilitation, resurfacing, restoration, and operational improvements for highways and bridges; capital costs for transit projects, carpool projects; highway and transit safety improvements; planning; transportation enhancements; management systems; wetland mitigation; and intelligent transportation system capital improvements; environmental restoration STP funds are generally used for any roads that are not classified as local or as rural minor collector. Each State must set aside 10 percent of STP funds for safety construction and 10 percent for transportation enhancements. Of the remaining 80 percen
Bridge Replacement and Rehabilitation Program4,388,369,431To enable the States to replace bridges over waterways, other topographical barriers, other highways, or railroads when the determination is made that the bridge is significantly important and is unsafe because of structural deficiencies, physical deterioration or functional obsolescence. Bridges are categorized as on or off the Federal-aid system and by eligibility for replacement or rehabilitation. Apportionments are based on the estimated cost of deficient bridges in each State to the estimated total cost of deficient bridges for all S
Interstate Maintenance Program (IM)5,118,588,513This program finances projects to rehabilitate, restore, resurface, and reconstruct the Interstate System. Reconstruction that increases capacity other than HOV lanes is not eligible for IM funds Funds are apportioned based one-third on the ratio of Interstate System lane miles in each State to total Interstate System lane miles, one-third on the ratio of vehicle miles traveled (VMT) on the Interstate System in each State to total VMT on the Inter
Congestion Mitigation and Air Quality Improvement Program (CMAQ)1,749,098,821This program funds projects to improve air quality in nonattainment areas for ozone, carbon monoxide, or particulate matter. A wide range of transportation activities are eligible if FHWA and EPA determine they will help meet National ambient air quality standards. Funds are apportioned on the ratio of the total of all nonattainment and maintenance area populations in all States. States are guaranteed a minimum 0.5 percent apportionment.
Minimum GuaranteeFunds are administered as STP funds. Funding in excess of $2.8 billion is distributed to IM, NHS, Bridge Replacement and Rehabilitation, CMAQ, and STP programsFunds are allocated to ensure that no State receives less than 90.5 percent of estimated tax payments attributable to highway users in each State paid into the Highway Account of the Highway Trust Fund.
Intelligent Transportation Systems Program (ITS)$110,000,000The ITS program includes the ITS research and development program, and the ITS deployment incentives program. The program is a cooperative public/private initiative to research, develop, and evaluate advanced electronic and information systems that improve the safety, operational efficiency, and productivity of the existing surface transportation infrastructure.
Emergency Relief ProgramSuch sums as necessary to carry out the lawFunds are provided for the repair or reconstruction of Federal-aid highways and bridges, and Federally-owned roads and bridges which have been seriously damaged by a natural disaster or by a catastrophic failure from any external cause
Federal Lands Highway Program$925,000,000The Federal share for Federal Lands highway projects is 100 percent. Eligible projects may include transportation planning for tourism and recreational travel, adjacent vehicular parking areas, interpretative signage, acquisition of scenic easements and
Public Lands Highways$290,000,000Funds are for transportation planning, research, engineering, construction and reconstruction of highways, roads, and parkways; or of transit facilities Includes State and local roads which provide access to and within the National Forest System. These roads are separate from Forest Development Roads which are under Forest Service jurisdiction. Funds are allocated to specific projects on the basis of ne
Parkways and Park RoadsIncluded in "Federal Lands Highway"Funds are for transportation planning, research, engineering, construction and reconstruction of highways, roads, and parkways; or of transit facilities Parkways and Park Roads are under the jurisdiction of the National Park Service and provide access to and within the National Park System.
Indian Reservation Roads Included in "Federal Lands Highway"Funds are for transportation planning, research, engineering, construction and reconstruction of highways, roads, and parkways; or of transit facilitiesIncludes roads under the control of the Bureau of Indian Affairs, and State and local roads that provide access to and within Indian lands.
Transportation Infrastructure and Finance (TIFIA) Program$122,000,000Program provides Federal credit assistance to major transportation investments of critical national importance. Program consists of three types of financial assistance: secured loans, loan guarantees, and standby lines of credit.Federal credit assistance limited to a maximum of 33 percent of total project cost.
National Corridor Planning and Coordinated Border Infrastructure Program$487,000,000Program provides grants to State and local governments for planning, design, and construction of corridors of national significance, economic growth, and international or interregional trade.The purpose is to improve the safe movement of people and goods at or across the northern and southern borders of the United States.
Administration and research$635,800,000Includes administration of the Federal-aid Highway Program, highway research and technology activities, special studies and programs.Includes $319,800,000 for highway research and technology activities, and $316,000,000 for administration. Administration is limited to 1.5 percent of certain FHWA administered programs
Miscellaneous programsSuch sums as providedTo carry out an assortment of programs.Includes funds for: other programs, Woodrow Wilson Memorial Bridge, Mississippi Delta Initiative, IRS Initiative, miscellaneous highway trust funds, and miscellaneous trust funds. Miscellaneous also includes: Scenic Byways, Highway Use Tax Evasion Projec
Revenue Aligned Budget Authority (RABA)Such sums as necessary to carry out the lawAdjustment made to reflect changes in tax receipts to the Highway Account of the highway Trust FundRABA funds included in the Federal-aid highway and highway safety construction programs.
High Priority and Demonstration ProjectsSuch sums as necessary to carry out the law
Appalachian Development Highway System$470,000,000To provide a system of development highways and access roads which would contribute to economic development opportunities in the Appalachian regions of 13 States
Safety Incentive Grants$1,000,000Includes Road Safety funding as well as Bicycle and Pedestrian Safety Grants
Miscellaneous General Fund AppropriationsAmount as AuthorizedFor demonstration projects.
Roadway Safety Improvements for Older Drivers and PedestriansSuch sums as necessary to carry out the law
Federal Motor Carrier Safety Administration (FMCSA)Administers National Motor Carrier Safety Program (NMCSAP). Supports a broad range of commercial motor vehicle programs in each State and provides for information systems and analysis.The FMCSA was established January 1, 2000 (PL 106-159, 113 Stat. 1748). Formerly a part of FHWA, the primary mission is to prevent commercial motor vehicle-related fatalities and injuries.
National Motor Carrier Safety Program Amount as AuthorizedGrants are provided to States for roadside inspections and other commercial motor vehicle safety programs, including detection and correction of commercial motor vehicle safety defects, commercial motor vehicle driver deficiencies, and unsafe practices before becoming a factor in crashes and hazardous materials incidents.Includes funds from FHWA as a part of reallocated revenue aligned budget authority.
AdministrationAmount as authorized For administrative expenses of motor carrier safety programs and motor carrier safety research
Office of the Secretary of TransportationAppropriationFor research activities and studies concerned with planning, analysis, and information development needed to support the Secretary's responsibilities in the formulation of national transportation policy, including highways.
Bureau of Transportation StatisticsAmount as authorizedOperation and administration of the Bureau. Funded from the Federal-Aid Highways program of the Highway Trust Fund.
National Highway Traffic Safety AdministrationSupports the "Motor Vehicle and Driver Programs" as well as other supporting legislation for the various programs of the NHTSA are designed to improve traffic and highway safety throughout the Nation by rulemaking programs, enforcement programs, research and analysis.Develop adequate highway safety programs of State and local governments
Federal Highway Trust Fund, Highway Account:
Operations and RessearchAmount as authorizedSupports rulemaking programs, enforcement programs, highway safety programs, and research and analysis, and a child passenger protection education grant program Also receives transfer from Safety Grants Authorization.
National Driver RegisterAmount as authorizedImplementation and operation of the Problem Driver Pointer System (PDPS). Improve traffic safety by assisting State motor vehicle administrators in communicating with other States to identify drivers whose licenses have been revoked for serious traffic offenses
Highway Traffic Safety GrantsFunds programs for:At least 40 percent of Section 402 funds must be used to address local traffic safety concerns.
US DEPARTMENT OF AGRICULTURE
Forest ServiceFY 2008 Obligation Distribution
Infrastructure Program: Forest Development and Roads and TrailsAmount as AuthorizedFunding for infrastructure provides capital improvements and maintenance of facilities, roads, and trails. Capital improvements on roads includes: new road construction, alteration of an existing road to change the function, and roadway expansion to increase capacity or to serve needs different from that originally intended. Road maintenance includes: annual road maintenance, deferred road maintenance, road operations, and decommissioning roads Funds are allocated according to the relative needs of the various national forests, considering existing transportation facilities, value of timber or other resources served, relative fire danger, and comparative difficulties of road and trail constructi
National Forest Fund10 percent of receiptsMerged with funds provided above for Forest Development Roads and Trails, and obligated for same purposes.Receipts are derived from timber sales, grazing fees, and other charges for use of the National Forest.
Federal Highway AdministrationAmount required from above fundsReimbursement for surveys, plans, and supervision of construction at request of the Forest Service.
National Forest Fund25 percent of receiptsPaid to States for public roads and schools in the counties where forests are situated.Receipts are derived primarily from timber sales.
National Grasslands25 percent of receiptsPaid to counties in which such land is situated, for school and road purposes.Derived chiefly from grazing fees and mineral leases.
National Forest FundAppropriationFor payments to the States of Washington, Oregon and California under the Northern Spotted Owl Guarantee programProvides payments for county schools and roads.
US DEPARTMENT OF COMMERCE
Economic Development Administration
Grants for Public Works and Economic DevelopmentAmount as AuthorizedDirect and supplemental grants to States, local governments, and other agencies for public works facilities, other financial assistance, and planning and coordination assistance needed to alleviate unemployment or underemployment in economically distressed areas.Public works projects include industrial access roads and other infrastructure development. Most grants are for 50 percent of project cost with some grants for 80 percent of project cost. Some grants are for disaster relief.
US DEPARTMENT OF DEFENSE
US ARMY CORPS OF ENGINEERS
Payments to States, Flood Control Act of 195475 percent of receiptsPayment are to compensate States for lost tax base. For public schools, public roads or other expenses of county governments. Not all States receiving funds are listed below, only those with legislative distributions.Funds received from lease of Federal lands acquired for flood control, navigation, and allied purposes. Paid to States where property is situated.
Payments to States, Sale of Forest ProductsSee remarksFor public schools or public roads of county government.The Department of Defense may be reimbursed for all costs of production of forest products pursuant to Section 2665 of Title 10 U.S.C. from proceeds. Of any remaining proceeds, 40 percent is distributed to States where military installations are located
Civil Works ProjectsAmount requiredCosts of relocating and reconstructing roads and bridges as a result of flood control, navigation, and allied projects.Some funds are paid to State highway agencies or local governments as reimbursement for work performed under agreement.
Alteration of Bridges Over Navigable WatersAmount requiredCosts of altering bridges over navigable waters to remove obstacles to navigation and to meet necessities of railroad and/or highway traffic.Share of cost limited as prescribed by statute.
Military Functions
Maintenance:
U.S. ArmyAppropriationNecessary infrastructure repair improvements at Fort Baker which is under the management of the Golden Gate Recreation Area.
Military Construction;
U.S. ArmyAppropriationConstruction of military and defense access roads of the U.S. Army.
U.S. NavyAppropriationConstruction of access roads, naval installation roads of the U.S. Navy.
U.S. Air ForceAppropriationConstruction of access roads, military installation roads of the Air Force.
Federal Highway AdministrationFund transfer from above appropriationsConstruction of access roads for the Department of Defense.Funds appropriated to the Department of Defense may be advanced to FHWA for the construction of access roads.
US DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
Community Planning and DevelopmentSee remarksDirect and supplemental grants to States and local governments, and related expenses necessary for carrying out a community development grants program. Community development projects may include expenditures on roads (42 U.S.C. 5301).
Regional ConnectionsAppropriationProgram complementing existing Federal programs that direct growth and investment patterns.
US DEPARTMENT OF THE INTERIOR
King Cove RoadAppropriationFor improved access to health care, funds were appropriated to the Aleutians East Borough for the construction of an unpaved road on King Cove Corporation lands to an improved dock and marine facilities.
Bureau of Land Management
Transportation and Facilities ManagementSee remarksProvides for maintenance of administration and recreation sites, roads, trails, bridges and dams.Some 12,000 miles of roads are expected to be maintained.
Construction and accessSee remarksAcquisition of land and construction of buildings, recreational facilities, roads and trails.
Oregon and California grant landsSee remarksManagement, protection and development of resources; construction, operation and maintenance of access roads; reforestation; and other improvements to these lands including existing connecting roads on or adjacent to the grant lands.Legislation provides that 25 percent of all Oregon and California grant land receipts are transferred to general funds in the U.S. Treasury.
Red River Oil and Gas Royalties37 1/2 percent of receiptsPaid to the State of Oklahoma in lieu of State and local taxes on Kiowa, Comanche, and Apache tribal lands for construction and maintenance of public roads, and for public school.
Oregon and California grant lands25 percent of receiptsFor right-of-way, construction, operation and maintenance of timber access roads; reforestation; and development of recreation facilities on the retested Oregon and California Railroad grant land in Oregon.Funds derived from timber sales.
Oregon and California grant lands50 percent of receiptsPaid to the 18 Oregon and California land-grant counties for road construction, maintenance or other county purposes (39 Stat. 218, 50 Stat. 876).Funds derived from timber sales.
Coos Bay Wagon Road grant lands75 percent of receiptsPaid to Coos and Douglas Counties, Oregon, in lieu of taxes, for schools, roads, highways, bridges, and port districts.
National Petroleum Reserve50 percent of receiptsPaid from funds derived from oil and gas leases to the State of Alaska for construction, maintenance and operation of essential public facilities.
National Grasslands, Bankhead Jones Act25 percent of receiptsFrom revenues received for the use of the National Grasslands, to counties in which such land is situated, for road and school purposes.Revenue from sale of public land and public land products.
Public land sales5 percent of receiptsPaid to States for school and road purposes.Net proceeds from sale of public land and public land products.
Grazing receipts Taylor Grazing Act50 or 12 1/2 percent of receipts (See remarks) To States and counties for general purposes, including road purposes. Not all States receiving funds are listed below, only those with legislative distributions. 50 percent of receipts from public lands outside grazing districts, and 12 1/2 percent of receipts from public lands within grazing districts. Receipts are returned to the State of origin.
Road maintenance depositsAmount depositedProvides maintenance funds for access roads under Bureau of Land Management control
Public Lands Development RoadsSee remarksConstruction and improvement of roads and trails on public domain lands; for adjacent vehicular parking areas; and for sanitary, water, and fire control facilities facilitiesUnder an interagency agreement, FHWA cooperates in carrying out the provisions of the Act. See FHWA for authorization.
Mineral Management Service
Mineral Leasing Act50 percent of receiptsPaid to States for construction and maintenance of public facilities. Where a portion is applied for road purposes, the amounts are shown below: (No entry is given for States where amounts are insignificant.) Not all States receiving funds are listed below, only those with legislative distributions.Alaska receives 90 percent of receipts generated in Alaska. Receipts are from bonuses, royalties, and rentals resulting from development of mineral resources.
National Forest FundAppropriationPaid to States for public roads and schools in the counties where forests are situated.Receipts are derived from timber sales.
National Park Service
Operation of the National Park SystemAppropriationMaintenance and operation of roads and trails within national parks including special road maintenance service to trucking permit holders on a reimbursable basis.
Construction and major maintenanceAppropriationConstruction, improvements, repair or replacement of physical facilities.
Recreational FeeAppropriationAdmission and user fees program for park improvements.
Demonstration Program Transportation Systems FundFees charged for public use of transportation services are retained are retained and used by the collecting park for transportation system costs.Included in Recreational Fee Demonstration Program.
Delaware Water GapSee remarksManagement, operation and maintenance of Route 209 within the Delaware Water Gap National Recreation Area.Fees collected from commercial vehicles for use of the road within the park.
Federal Highway Trust - Fund, Highway Account:Parkway project construction funds.
Cumberland Gap National Historical ParkAppropriationReconstruction and relocation of route 25E through the Cumberland Gap National Historical Park, including construction of a tunnel and the approaches.
Parkways, park roads and trailsAmount allocatedConstruction and rehabilitation of parkways, park roads, bridges and trails (23 U.S.C. 203)Included in Federal Lands Highway Program and paid from the Highway Trust Fund.
Federal Highway AdministrationAmount requiredReimbursement for engineering surveys and plans and supervision costs.
Bureau of ReclamationAmount requiredConstruction and relocation of roads and bridges where affected by reclamation projects.In some instances, funds are paid in reimbursement to State and local governments for the cost of projects.
Bureau of Indian AffairsAppropriationConstruction and maintenance of roads within Indian reservations.Up to 6 percent of contract authority available to the BIA from the Federal Highway Trust Fund may be used for road program management costs of the BIA.
Indian RoadsAmount AllocatedConstruction and improvement of Indian reservation bridges and roads A small amount of engineering supervision is provided by FHWA on a reimbursable basis. Funded under Federal Lands Highway Program and paid from Highway Trust Fund.
Fish and Wildlife Service
ConstructionAppropriationConstruction projects include the repair and inspection of bridges within the National Wildlife Refuge System.
Recreational Fee Demonstration ProgramAppropriationFees are used primarily at the site to improve visitor access, enhance public safety and security, address backlogged maintenance needs, and meet other operational needs.At selected refuges and public sites, entrance fees and other user fees are deposited into the Recreational Fee Demonstration Program Account.
National Wildlife Refunge FundAppropriationPaid to counties in which refuges are located for school and road purposes (16 U.S.C. 715s). Not all States receiving funds are listed below, only those with legislative distributions.Approximately 25 percent of sales from refuge products.
APPALACHIAN REGIONAL COMMISSION (ARC)AppropriationThe Appalachian Development Highway System (ADHS), including local access roads, is designed to improve the accessibility of Appalachia; to reduce highway transportation costs to and within Appalachia; and to provide the highway transportation facilities necessary for the overall development of Appalachia. The Appalachian region consists of the States: of West Virginia and parts of the following States; Alabama, Georgia, Kentucky, Maryland, Mississippi, New York, North Carolina, Ohio, Pennsylvania, South Carolina, Tennessee, and Virginia.Funding for the ADHS is provided solely from the Highway Trust Fund HTF. The ARC exercises programmatic and administrative control over these funds. Additional funding is available from NHS and STP programs for Federal-aid highways on the ADHS.
FEDERAL EMERGENCY MANAGEMENT AGENCY (FEMA)ApproopriationThrough the Disaster Relief Fund (DRF), FEMA provides assistance to State and local governments for pre-disaster mitigation, and for repair and reconstruction of infrastructure in Presidentially-declared major disasters or emergencies. Amount and distribution of disaster assistance funds are dependent on the type of disaster and damage, and subsequent appropriations. Examples of disasters include earthquakes, hurricanes, tornadoes, floods, and blizzards