METRO Magazine Logo
MenuMENU
SearchSEARCH

Report calls for increased federal gas tax

$1.9 billion nationally could be raised for each 1-cent increase.

January 15, 2008
2 min to read


Increasing federal gasoline taxes up to 40 cents per gallon over the next five years and peak-hour “congestion pricing” on highways were two solutions recommended by the National Surface Transportation Policy and Revenue Study Commission to help fund federal transportation programs.  


Ad Loading...

Under the proposed gas tax raise, the current 18.4 cents per gallon tax would be increased by 5 cents to 8 cents annually for five years, then indexed to inflation afterward to help fix the infrastructure, expand public transit and highways, and broaden railway and rural access. The tax, which has not been raised since 1993, could generate about $1.9 billion nationally for each one-cent increase, according to the report.  


“We congratulate the majority members of the National Surface Transportation Commission for taking on its assignment and making the tough decisions to invest in the mobility of our citizens, to maintain global competitiveness of our economy and protect our quality of life,” said APTA President William Millar in a statement.  


The long-awaited report, comes after nearly two years of study by a 12-member commission representing federal, state and local governments; metropolitan planning organizations; transportation-related industries; and public interest organizations. The commission was formed by Congress in 2005 to recommend funding options and study the future needs of the nation’s surface transportation system, which includes roads, mass transit systems, ports and rail lines. Other suggestions for creating a dedicated funding source for transportation included tolls, peak-hour congestion pricing on highways, freight fees and ticket taxes for passenger rail improvements.  

Ad Loading...


Recent efforts to raise the gas tax have failed over the objections of the Bush administration, a fact that was pointed out by Transportation Secretary Mary Peters and two other members of the commission that oppose gas tax increases and issued a dissenting opinion to the report that said private-sector investment and tolls would be sufficient.  


To view the full report, visit www.transportationfortomorrow.org.

Topics:Management

More Management

A photo of an Amtrak train with a logo
Managementby Alex RomanJuly 24, 2026

Biz Briefs: STV teams with Amtrak, Motorcoach Operators Boost Fleet and Land Contracts, and More

From manufacturers and suppliers to transit agencies and motorcoach operators, these updates offer a snapshot of the projects, partnerships and business moves driving the industry forward.

Read More →
MBTA rail platform with people walking by.
Managementby Elora HaynesJuly 23, 2026

Massachusetts Approves $530M to Strengthen MBTA Operations, Infrastructure

The funding package targets operating stability, capital improvements, and fare affordability, offering a model for agencies navigating long-term funding challenges.

Read More →
LA Metro at State of the Agency event.
Managementby Alex RomanJuly 23, 2026

LA Metro Marks Banner Year, Sets Ambitious Goals for New Fiscal Year

Incoming LA Metro Board Chair and Los Angeles Mayor Karen Bass joined outgoing Board Chair Fernando Dutra and LA Metro CEO Stephanie Wiggins to review accomplishments from fiscal year 2026, which included the opening of new rail extensions, advancement of major transit projects, expanded safety programs, and new rider amenities.

Read More →
Ad Loading...
Nathaniel P. Ford Sr., named President/CEO at DART
Managementby Alex RomanJuly 22, 2026

DART Taps Nathaniel P. Ford Sr. as Next President/CEO

Since 2012, Ford has served as the CEO of the Jacksonville Transportation Authority

Read More →
Maintenance Leadership for a Changing Industry
Managementby Alex RomanJuly 22, 2026

AC Transit’s Cecil Blandon on Building the Next Generation of Transit Maintenance Leaders

The agency’s maintenance chief discusses leadership, workforce development, zero-emission technology, and preparing technicians for the future of public transportation.

Read More →
High-Speed Rail Partners Align on High Desert Corridor
Railby Alex RomanJuly 21, 2026

California High-Speed Rail Authority Signs MOU to Advance High Desert Corridor

The agreement deepens collaboration between the California High-Speed Rail Authority and the High Desert Corridor Joint Powers Agency, supporting design integration, cost savings, and faster delivery of a key Southern California rail link.

Read More →
Ad Loading...
TechnologyJuly 20, 2026

Building the Next Generation of Transit Technology

In this edition of METROspectives, Luminator CEO Magnus Friberg discusses the company's transformation, the growing role of AI and software, and what's next for transit technology.

Read More →
What Transit Agencies Get Wrong About Data METROspectives episode with strada360's Steve Lassey
Sponsoredby Alex RomanJuly 20, 2026

How Data, Strategy, and Community Engagement Are Reshaping Transit

In this edition of METROspectives, strada360 CEO Steve Lassey discusses how transit agencies can better align planning with operations, leverage data to improve decision-making, and build public trust as they prepare for the future of mobility.

Read More →
An NJ TRANSIT River Line light rail vehicle.
Managementby Staff and News ReportsJuly 17, 2026

NJ TRANSIT Secures Capital Funding, Adopts FY2027 Budget

The budgets continue investments in infrastructure and equipment to maintain the system in a state of good repair and enhance the overall customer experience.

Read More →
Ad Loading...
A scene of Penn Station with Hudson Yards skyscrapers in the background in New York City.
Managementby Elora HaynesJuly 16, 2026

Federal Railroad Administration Study Finds Upgrades Could Boost Penn Station Capacity by One-Third

The study outlines a roadmap for increasing train throughput while preparing Penn Station for future growth across the Northeast Corridor.

Read More →