The debate over the surface transportation reauthorization bill is already underway, and early proposals show just how much is at stake for the future of our transportation system.
As Congress gears up for surface transportation reauthorization, a slew of marker bills has emerged. These standalone proposals signal priorities, test ideas, and lay the groundwork for the final package. While they rarely pass on their own, these bills play an outsized role in shaping the debate. Taken together, they offer an early look at whether federal transportation policy is moving toward building a more accountable, multimodal system or doubling down on outdated approaches.
So far, the picture is mixed. Here’s a look at three recent proposals that together capture the good, the bad, and the ugly of where things might be headed.
The good: measuring what matters in transportation
The Generating Resilient, Environmentally Exceptional National (GREEN) Streets Act, introduced by Sen. Ed Markey (D-MA), and its companion legislation introduced by Rep. Jared Huffman (D-CA), would meaningfully shift how we approach transportation and climate policy. The bill would establish clear goals for reducing greenhouse gas emissions across our transportation system at a time when transportation remains the largest source of emissions in the U.S.
For decades, federal transportation policy has prioritized expanding highway networks, based on the assumption that most trips will be made by car. The result is a system that encourages more driving, leading to increased congestion, higher emissions, and greater burdens on communities already facing public health challenges and an affordability crisis.
The GREEN Streets Act would begin to address this by directing the U.S. Department of Transportation to set minimum standards for states to reduce emissions, vehicle miles traveled, and air pollution on public roads. By focusing on outcomes rather than infrastructure expansion, the bill would help reorient transportation policy toward improving access and affordability.
The bad: punitive EV fees that won’t fix the Highway Trust Fund
There’s no question that the Highway Trust Fund faces a real fiscal challenge, but not every proposed solution actually addresses this.
One idea that has been circulating for years and is now gaining renewed traction is putting federal fees on electric vehicles (EVs). House Transportation and Infrastructure Chair Sam Graves (R-MO) has made clear that EV fees are very much in play in the upcoming surface transportation reauthorization. He signaled that if they don’t make it into a Senate package, he will pursue them through other legislative options, including in the House’s draft of the 2025 budget reconciliation bill.
It makes sense that EV drivers should contribute to transportation investments, especially as their share of the vehicle fleet grows, but this proposal misses the mark entirely. For starters, the proposed fees are wildly disproportionate. In 2019, the average gas-powered vehicle paid roughly $95 in federal gas taxes each year. A $250 annual fee on EVs would be more than double that amount, despite EVs currently making up a relatively small share of vehicles on the road. Finally, Chairman Graves’ proposal does not direct those funds into the Mass Transit Account of the Highway Trust Fund. Other marker bills—like one from Sen. Fischer and Rep. Dusty Johnson that would impose a one-time $1,000 fee on all EVs—are even more extreme.
Many states already have their own EV registration fees, often at similarly inflated levels. Piling on a federal fee risks creating a punitive system that discourages EV adoption without improving the Highway Trust Fund’s long-term outlook.
You can’t solve a structural funding problem on the backs of a growing but small minority of drivers. Aggressive EV fees won’t change the underlying math of rising highway construction costs and declining gas tax revenues. A sustainable solution will require a broader rethink of how we fund transportation, not a band-aid solution that’s unfair and ultimately ineffective.
The ugly: more“flexibility” that undermines accountability
The Highway Funding Transferability Improvement Act, introduced by Sens. Kevin Cramer (R-ND) and Angela Alsobrooks (D-MD), and its companion bill introduced by Rep. Harriet Hageman (R-WY) would increase how much flexibility states have to transfer federal highway funds to other highway programs from 50 percent up to 75 percent. Supporters of the bill frame this change as allowing more local control and streamlining transfers between programs, but in reality, it risks weakening one of the few tools Congress has to ensure federal dollars are spent as intended.
States already have significant flexibility under current law, including the ability to transfer unlimited funds to transit programs, as long as the projects are eligible under both funding categories. If states aren’t investing in transit, safety, or emissions-reducing projects today, it’s not because they lack flexibility. It’s because the state isn’t interested in those investments.
This proposal would allow states to shift further funding away from programs that specifically address safety, air quality, and multimodal transportation. In practice, it could shrink already limited investments in these projects to an even smaller fraction than Congress intended.
We’ve seen how this plays out. Flexibility can be valuable, but not when it comes at the expense of accountability. Expanding that authority risks opening the floodgates, particularly in places with poor safety records or ongoing air quality challenges.
What does this mean for surface transportation reauthorization?
Marker bills are initial ideas that can be incorporated into a surface transportation reauthorization package that allocates how hundreds of billions of dollars are spent. It will shape whether we double down on outdated, car-centric policies or move toward a system that prioritizes repair, safety, and multimodal investment.
The good news is that there are thoughtful ideas on the table, but the challenge is that there are just as many that would move us backward. When the draft of the surface transportation reauthorization bill is released, T4America will examine proposals and grade them against our core principles, which have broad support from voters across the political spectrum. Bills that fall short of these very attainable goals will be rated accordingly, while those that meet the mark will earn our ringing endorsement.
The post The good, the bad, and the ugly: early signals for reauthorization appeared first on Transportation For America.
