Key Goals for Surface Transportation Reauthorization Bill Identified

Washington, D.C., August 14, 2025

News Summary

Rep. Sam Graves has outlined four essential priorities for the upcoming surface transportation reauthorization bill as Congress prepares to address funding and key focuses for highway and transit infrastructure projects. With projections indicating potential insolvency of the Highway Trust Fund by 2028, lawmakers are urged to prioritize formula funding, streamline permitting processes, increase state flexibility, and identify new revenue sources. Environmental review reforms and alternative funding mechanisms, such as vehicle-miles-traveled fees, are also considered crucial for ensuring robust infrastructure support in the years to come.

Key Goals for Surface Transportation Reauthorization Bill Identified

Rep. Sam Graves, who chairs the House transportation and infrastructure committee, has laid out four essential priorities as Congress embarks on developing the next surface transportation reauthorization bill. This forthcoming legislation will determine funding levels and key focuses for highway and transit infrastructure projects over the next several years, amid growing concerns surrounding the viability of the Highway Trust Fund.

Timeline and Context

Lawmakers have more than a year to finalize this critical bill before the previous authorization expires on September 30, 2026. The urgency is heightened by projections that the Highway Trust Fund may face insolvency by 2028, making it vital for lawmakers to take proactive measures. The U.S. Department of Transportation (DOT), alongside notable lawmakers and construction industry representatives, has indicated strong alignment on certain crucial priorities.

Funding Strategies and Approaches

Major industry organizations are advocating for a focus on formula funding, which is viewed as a more efficient way to distribute funds to states compared to discretionary grant programs. It has been noted that such formula funding allows for swifter and more predictable allocation, which is pivotal in ensuring timely infrastructure improvements. The previous surface transportation bill, the 2021 Infrastructure Investment and Jobs Act, allocated over $560 billion to the DOT, with a significant $305 billion set aside specifically for a five-year reauthorization of surface transportation.

Priority Areas for the Upcoming Bill

Rep. Graves outlined four key priorities for the reauthorization bill:

• Prioritizing formula funding to ensure states receive allocation with minimal delays.
• Permitting reform to streamline project timelines and enhance efficiency.
• Providing states with greater flexibility in managing funds and projects.
• Identifying new revenue sources for the Highway Trust Fund to maintain robust funding levels.

Environmental Review Reforms

Industry groups are emphasizing the need for reforms to federal regulations surrounding the National Environmental Policy Act (NEPA), specifically advocating for the expansion of NEPA Assignment. This process allows states to assume responsibility for conducting specific environmental reviews, potentially accelerating project delivery. Currently, only eight states have engaged in NEPA Assignment, but those states have experienced marked improvements in their project timelines.

New Revenue Sources and Funding Concerns

The current funding structure for the Highway Trust Fund relies heavily on federal gas taxes, which have remained unchanged since 1993. As discussions progress, Graves has suggested considering new revenue sources, such as registration fees on electric and hybrid vehicles. This initiative aligns with broader discussions within legislative circles to maintain current funding levels, accounting for inflation, and to explore alternatives to traditional funding mechanisms.

Further proposals from various organizations include a request for $138 billion for public transit and $130 billion for passenger rail over the next five years. Civil engineers have voiced the need to index transportation user fees to inflation so that the purchasing power can be preserved in the face of rising costs.

Future Funding Alternatives

Lawmakers are also weighing the potential implementation of vehicle-miles-traveled fees as a sustainable alternative to further bolster funding for transportation initiatives. This innovative approach would complement existing revenue streams from the gas tax and registration fees for electric and hybrid vehicles.

Conclusion

The intricate nature of securing an adequate funding framework for transportation projects continues to be a prominent concern for both lawmakers and industry groups. With significant challenges ahead and a pressing timeline, the next surface transportation reauthorization bill will play a crucial role in shaping the nation’s infrastructure system well into the future.

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Additional Resources

• ENR: Construction Groups Float Goals for Next Surface Transportation Funding Legislation
• Wikipedia: Transportation in the United States
• Transport Topics: Sam Graves Tapped Again
• Google Search: Surface Transportation Reauthorization Bill
• Roll Call: In a Party of Firebrands, Graves Sidesteps Limelight
• Encyclopedia Britannica: Highway Trust Fund