On the recordMay 17, 2005
funding for transportation infrastructure such as roads, bridges and border crossings is a sound investment that increases the mobility of people and goods, enhances economic competitiveness, reduces traffic congestion, and improves air quality. Those improvements in transportation infrastructure are critical to our States, and the Federal highway money that States receive is critical for funding them. In addition, few Federal investments have as large and immediate an impact on job creation and economic growth as transportation infrastructure. The Department of Transportation estimates that every $1 billion in new Federal investment creates more than 47,500 jobs. Unfortunately, the formula that distributes Federal highway funds to States is antiquated and inequitable. Historically, about 20 States, including Michigan, have been ``donor'' States, sending more gas tax dollars to the highway trust fund in Washington than are returned in transportation infrastructure spending. The remaining 30 States, known as ``donee'' States, have received more transportation funding than they paid into the highway trust fund. This unfair practice began in 1956 when small States and large Western States banded together to develop a formula for distributing Federal highway dollars that advantaged themselves over the remaining States. Once that formula was in place, they have tenaciously defended it.…
Source
govinfo.gov




