Oregon may have a better way to fund highway projects

If Congress doesn’t act soon, a key source of state highway funds could soon begin to dwindle.

The Highway Trust Fund, which provides most states with about half of their transportation money, will begin to dry up in the coming months, the Transportation Department recently warned. But even if Congress extends funding, the solution will likely only be temporary.

That’s because the fund suffers from some key problems that will only likely get worse. The fund is largely fueled by the federal gas tax, which hasn’t been raised since 1993. Even if lawmakers do raise the tax, though, environmentally friendly trends such as increased fuel economy of vehicles means lawmakers may soon have to find alternative funding sources.

By Niraj Chokshi

Full Story: http://www.washingtonpost.com/blogs/govbeat/wp/2014/07/12/oregon-may-have-a-better-way-to-fund-highway-projects/?tid=hpModule_ba0d4c2a-86a2-11e2-9d71-f0feafdd1394&hpid=z11