ASA Opposes Gas Tax Holiday
On June 22, 2022, ASA and the Americans for Transportation Mobility (ATM) coalition sent a letter to President Biden opposing any and all efforts to undermine recent and historic infrastructure investments, including suspending federal and state motor fuel user fees, commonly known as “gas taxes.” Per the letter, “American consumers are facing significant economic anxieties brought about by record inflation, continuing supply chain issues, high energy prices, labor shortages, and continued concerns over the COVID-19 pandemic. These stiff economic headwinds demand your Administration’s full attention and prompt action but suspending the gas tax would not have a meaningful impact on addressing these challenges.
Doing so, however, would very likely hurt efforts to improve the safety and condition of our roadways, bridges, and transit systems. It would also undermine efforts to create jobs and realize the once-in-a-generation investments in our nation’s infrastructure by the historic and Bipartisan Infrastructure Law.”
In terms of background, gas tax revenues are fundamental to the solvency of the Highway Trust Fund (HTF), which helps fund these critical transportation programs. As stated in the letter, “the decline in revenues to the HTF also jeopardize the certainty necessary for our state and local partners to plan long-term projects and the association hiring and equipment purchasing required.”