Congressman Tom Rice

Representing the 7th District of South Carolina

Highway Trust Fund Certainty Act

The federal government shares the cost of highway and interstate projects with the states. Federal funding for these surface infrastructure projects comes from the Highway Trust Fund.  To date, the fund is insolvent and will amass a $13 billion deficit this year alone if the revenue formula is not modernized.  Enacting a long-term solution to fix the Highway Trust Fund has become a political issue lawmakers have refused to tackle since 1993. As such, Washington has patched the trust fund 33 times.

My legislation proposes a revenue-neutral raise of the federal motor fuel taxes by 10.1 cents per gallon. This rate increase would eliminate the fund’s deficit and index the new rate to inflation, ensuring the fund remains solvent in the future.  To offset the rate increase, H.R. 2971 creates a new income tax credit putting more than $130 dollars back in the pockets of hard-working Americans.  The effect of the bill will not raise revenue, but rather move money from the general fund into the Highway Trust Fund, creating a long-term stream of income for the fund. 

H.R. 2971: Highway Trust Fund Certainty Act