Highway Funding & Expenditures

Federal Highway Trust Fund Receipts

Most receipts from the Federal taxation of motor fuel, along with a number of other highway-related taxes, are deposited in the Federal Highway Trust Fund. The Trust Fund is made up of two accounts, highway and mass transit, and is dedicated for the funding of Federal surface transportation programs. In this way, taxes on highway users are used to fund highway facilities. The Trust Fund has provided a stable funding source for highway programs since it was established in 1956.

Motor-fuel tax receipts accounted for $30.288 billion in Fiscal Year 2000 or 86.6% of all Trust Fund tax receipts. Other taxes accounted for $4.684 billion. The balance in the Trust Fund currently earns no interest income.

Federal Highway Trust Fund Balance and Commitments

Note: The Highway Trust Fund was established July 1, 1956; the Mass Transit Account was established April 1, 1983.

Source: Federal Highway Administration, Office of Highway Policy Information.

The balance in the Highway Trust Fund has grown from $12.885 billion at the end of FY 1985 to $31.100 billion at the end of FY 2000. At the end of FY 2000, the Highway Account held a balance of $22.554 billion and had unpaid commitments of $61.875 billion. Funds for highway projects are committed when the project is initiated and are paid out as the project progresses. Because construction projects are long term in nature, the highway-user tax revenues can be committed to projects in advance of actual tax collection.

Obligation of Federal Funds for Roadway Projects by Improvement Types on the National Highway System (NHS) and Total (On & Off the NHS)

Note: Capacity addition improvements include Relocation, some Reconstruction, Major Widening, and Reconstruction-added capacity. The portion of reconstruction miles resulting in capacity improvements is estimated for 1994-based on new detail available beginning with the 1995 data. System preservation improvements include some Reconstruction, Minor Widening, Restoration and Rehabilitation, Resurfacing, and Reconstruction-no added capacity. Excludes certain improvement types such as Safety/Traffic/Traffic System Management, Environmentally- related Projects, Special Bridge Programs and Other projects.

Source: Fiscal Management Information System.

Obligations for roadway projects in FY 2000 were $7.9 billion for projects on the NHS and $16.2 billion for projects both on and off the NHS. The majority of the obligations both NHS and Total were for projects involving System Preservation.

Highway Funding by Category and Highway Expenditures

Source: Federal Highway Administration, Office of Highway Policy Information.

Total highway funding by all units of government reached $128.5 billion 2000, a 222.5% increase compared to 1980. At 63.0%, highway-user fees make up the largest share of revenues used to fund highways. When compared to the 56.9% in 1980, the present share has slightly increased. The General Fund share of highway funding has decreased from 21.0% in 1980 to 13.3% in 2000. Other taxes, investment income and bond proceeds account for 23.7% of the total highway funding as compared to 22.2% in 1980.

Total State Disbursements for Highways, 2000 -- $89.8 Billion

Source: Federal Highway Administration, Office of Highway Policy Information.

In 2000, States spent about $89.8 billion for highways, including Federal-aid. The largest single component of State spending is for capital improvements to existing highway ($89.8 billion or 10.4%).

Highway Funding and Expenditures by Government Unit (Billions of Dollars)

Note: Expenditures by the Federal Government only reflect direct expenditures by Federal agencies. Federal transfers are included with amounts shown for State and local governments.

Source: Federal Highway Administration, Office of Highway Policy Information.

State governments account for the largest shares of highway funding and highway expenditures. Local governments account for the next largest share of highway funding and highway expenditures. The Federal share of highway expenditures is the smallest as most Federal funds are transferred to State and local governments for expenditure in their highway programs. Over the past 20 years, the relative share of Federal funding has decreased from 25.0% in 1980 to 24.0% in 2000.

Highway Capital Expenditures and Maintenance Expenditures by All Units of Government

Source: Federal Highway Administration, Office of Highway Policy Information.

Highway capital expenditures increased 458.1% from 1970 to 2000. Adjusted for inflation, 2000 capital expenditures (expressed in constant 1987 dollars) were only 33.7% above the 1970 level. Expenditures for highway maintenance in 2000 increased 555.1% compared to 1970. After accounting for inflation, 2000 maintenance expenditures were 47.6% above the 1970 level.

Federal Highway-User Fees 1/

1/ See tables FE-101A, FE101B, and FE 21B in Highway Statistics 2000 for a more complete description of Federal highway-user fees.

Source: Federal Highway Administration, Office of Highway Policy Information.

Highway Construction Price Trends and the Consumer Price Index

Apportionment of Federal Funds Administered by the Federal Highway Administration for FY 1998, 1999, and 2000 (in millions of dollars) 1/

1/ Fiscal year starts October 1 and ends September 30.

2/ Apportioned pursuant to the Transportation Equity Act for the 21st Century (as amended by the TEA 21 Restoration Act) of 1998.

3/ Does not include funds from the following programs: emergency relief, highway-related safety, Federal lands highway programs, mandated projects, national magnetic levitation development, high-speed ground transportation development, and intelligent vehicle-highway system, among others. These funds are allocated from the Highway Trust Fund.

Source: Federal Highway Administration, Office of Highway Policy Information.

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