The Process and Path Forward for a Bipartisan Surface Transportation Bill

The Environmental and Energy Study Institute (EESI) held a start-of-the-new-Congress briefing series, Climate Camp. We reviewed climate science, cutting-edge innovations, and the role of the legislative process in climate mitigation and adaptation.

The surface transportation bill reauthorizes federal highway, transit, and rail funding and programs every five years. This final briefing of EESI’s Congressional Climate Camp series provided a breakdown of everything decision-makers need to know ahead of the bill’s next reauthorization in 2026. 

Panelists described the transportation bill’s history, including bipartisan cooperation, climate-related provisions, and external stakeholder engagement. Looking ahead, the briefing explained the general timeline for the reauthorization, the bill’s jurisdiction, and key issues across bill titles. The briefing also shared on-the-ground climate success stories from the most recent reauthorization—the bipartisan Infrastructure Investment and Jobs Act.

View the full briefing series at eesi.org/2025climatecamps.

This briefing was part of a series focused on the role of federal transportation and infrastructure investments in strengthening communities, increasing economic opportunity, building resilience, and reducing greenhouse gas emissions in the lead up to the next surface transportation reauthorization bill. View the full briefing series at eesi.org/transit-briefings.

Highlights

KEY TAKEAWAYS

The federal government started to invest in a national road system beginning in the 1930s. Previously, transportation was planned and funded at the state and local level. Since 1991, when the first modern-day, multimodal surface transportation reauthorization took place, the United States has spent over $1.5 trillion on surface transportation. States spend a significant portion of their transportation funding on building and expanding highways. In order to reduce greenhouse gas emissions from the transportation sector, more investment is needed in transit, pedestrian, bike, and electric vehicle infrastructure. States look to federal programs—like the Promoting Resilient Operations for Transformative, Efficient, and Cost-saving Transportation Program (PROTECT), the Rebuilding American Infrastructure with Sustainability and Equity (RAISE) program, the Reconnecting Communities Pilot Grant Program, and the National Electric Vehicle Infrastructure (NEVI) Formula Program—to make improvements to transportation systems for communities.

 

Benito Pérez, Policy Director, Transportation for America

• A fundamental question for policymakers is, who is the transportation system designed for, people or vehicles?
• Many transportation systems are built for suburban and city commuters who work 9 a.m. to 5 p.m. on weekdays. However, this system leaves behind third-shift workers, people attending evening events, working parents, the elderly, and many others.
• The federal government started to invest in a national road system beginning in the 1930. Previously, transportation was planned and funded at the state and local level.
• In 1956, President Dwight Eisenhower signed the National Interstate and Defense Highways Act into law, which made significant federal investments in transportation. The ideas in the law were modeled after European roadways observed during World War II. Germany used roads to connect communities to each other. In the United States, engineers not only applied this approach between cities, but also placing highways within a given community.
• Former Senator Daniel Patrick Moynihan (D-N.Y.) is largely responsible for the modern day, multimodal surface transportation reauthorization process.
• Since 1991, when Sen. Moynihan led the passage of the Intermodal Surface Transportation Efficiency Act (ISTEA) (P.L. 102-240), there have been five reauthorizations of surface transportation programs, the most recent being the Infrastructure Investment and Jobs Act (IIJA) of 2021 (P.L. 117-58).
• Across these reauthorizations, the United States has spent over $1.5 trillion on surface transportation.
• Congress has extended all surface transportation laws at least once to provide more time for passage of the reauthorization. The 1998 law was extended 12 times for a total of 23 months, and the 2005 law saw 10 extensions over 33 months.
• In the House of Representatives, the Transportation and Infrastructure Committee is responsible for the surface transportation bill, and the Ways and Means Committee determines how to pay for it.
• The Senate divides responsibility among four committees:  Finance funds the bill; Commerce, Science, and Transportation handles safety, rail, and freight; Banking, Housing, and Urban Affairs controls transit; and Environment and Public Works controls the roadways.
• There is a gap between revenue collection and spending within the Highway Trust Fund. The current funding system for transportation invests primarily in highways. In order to make sustained investments in bike lanes, walking paths, sidewalks, and alternative forms of mobility, a fundamental shift in policy would be needed.

 

Shruti Vaidyanathan, Director of Transportation Advocacy, Climate, and Energy, Natural Resources Defense Council

• States spend a significant portion of their transportation funding—about $50 billion per year—on building and expanding highways.
• In order to reduce greenhouse gas emissions from the transportation sector, more investment is needed in transit, pedestrian, bike, and electric vehicle infrastructure.
• The Highway Trust Fund, the primary source of funding for transportation, is insolvent. Fuel taxes, which support the fund, are insufficient to cover authorized spending because they have not increased since 1993.
• Since 2009, previous transportation bills have relied on transfers from the general fund totaling about $275 billion to keep the fund solvent. Nevertheless, the fund is anticipated to run out in 2028.
• Proposals to fill the funding gap include road user charges and electric vehicle fees. The solution must be fair both in terms of the modes of transportation impacted and the population paying the fees.
• The Highway Trust Fund also provides funding for transit, primarily for capital projects rather than operating costs. The Highway Account receives 80% of the revenue, and 20% goes into the Mass Transit Account. Data from recent years shows that, on average, 13% of revenue is actually spent on transit.
• The Stronger Communities Through Better Transit Act (H.R.7039) proposed by Rep. Hank Johnson (D-Ga.) aims to create an entirely separate source of funding for transit operations.
• The IIJA increased transportation funding by 50%. New programs include the Carbon Reduction Program, the Reconnecting Communities Pilot Grant Program, and the Thriving Communities Program.
• Both the Reconnecting Communities Pilot and the Thriving Communities Program put decision-making power in the hands of local leaders who know their communities’ needs best.
• The funding for the Carbon Reduction Program is flexible. Some states are using the funding to reduce greenhouse gas emissions from the transportation sector and improve access to multimodal transportation, but other states are transferring the money into highway accounts to support highway expansion and highway building.

 

Jennifer Boysko, Virginia State Senator

• Virginia has 128,000 miles of roads, more than 11,900 bridges, parts of the Washington Metropolitan Area Transit Authority metro system, two major airports, and one of the largest ports on the Eastern seaboard.
• About 17.4% of transportation funding in Virginia comes from the federal government. Much of this federal money supports one-time expenses like planning and engineering processes. States usually do not otherwise have the funding to carry out these important activities.
• Virginia has benefited from the Promoting Resilient Operations for Transformative, Efficient, and Cost-saving Transportation Program (PROTECT), the Rebuilding American Infrastructure with Sustainability and Equity (RAISE) program, the Reconnecting Communities Pilot Grant Program, and the National Electric Vehicle Infrastructure (NEVI) Formula Program.
• The Virginia Department of Transportation budget for fiscal year 2024 was $8.7 billion. Still, there are more needs than funds.
• Virginia’s first priority is maintaining existing infrastructure with the Highway Maintenance and Operating Fund. Remaining construction funding is distributed by the Virginia Commonwealth Transportation Board according to Virginia’s funding formula.
• Norfolk, Virginia, is implementing a Reconnecting Communities grant to give a predominantly Black community, which is currently disconnected from the downtown area by a complex set of highways and ramps, access to the rest of the city. The city is working closely with residents to find appropriate solutions.
• Jackson Ward is a historic African American community in Richmond, Virginia. In the 1950s, I-95 and I-64 construction went right through the community. Another Reconnecting Community grant will reunite the city.
• Virginia invests in multimodal transportation, including rail, buses, metro, walking, and biking. These investments reduce congestion, support economic vitality, and improve quality of life.
• Virginia is increasing funding for bus rapid transit because it is a fast, frequent, and reliable system that is relatively easy to implement.
• The Virginia Highway Safety Improvement Program found that, in Richmond, about 40% of the most serious incidents where people are killed or injured occur on only 3% of the roads. Virginia has secured federal funding to increase pedestrian safety in these areas. These 26 projects will cost about $10 million.
• The Long Bridge that connects D.C. to Virginia is a highly traveled, century-old, two-track bridge owned by the rail company CSX. Federal funding, combined with other funding, is allowing Virginia to build an additional four-track, 1.8-mile corridor that includes seven rail and pedestrian bridges crossing the Potomac River. Once in use, passenger rail will no longer need to stop and wait while freight rail uses the tracks.
• Virginia has started investing in electric buses and is incorporating more charging stations within bus storage and maintenance facilities with the assistance of federal funding.

 

Amber Dallman, Office of Sustainability and Public Health Director, Minnesota Department of Transportation

• Minnesota has the fourth largest public road system in the nation with approximately 11,700 miles of highways. Each of the 87 counties in the state has a transit system.
• The 20-year state highway investment plan includes different investment categories, including stewardship (i.e., maintenance and operations of roads and bridges), critical connections (i.e., rail, pedestrian, and bicycle infrastructure), safety, and climate resilience.
• The Statewide Multimodal Transportation Plan aims to provide safe, convenient, and affordable travel options in very rural parts of the state as well as urban and regional centers.
• People across the state are looking for transportation systems that provide easy access to essential amenities like grocery stores, that can withstand harsh weather, and that are resilient to impacts like flooding and wildfires.
• Minnesota’s Department of Transportation works to implement the state’s statutory greenhouse gas emission reduction goals while providing residents with access to resources and neighbors.
• New federal laws, programs, and funding—like those established by the IIJA—take time for state agencies to implement, which results in delays. Flexibility in funding is helpful. With the early stage funding, Minnesota focused on detailed planning. With the Carbon Reduction Program fund, Minnesota asked for input from residents, and based on that feedback, started by looking at options for electrification and low carbon fuels as well as walking, biking, and transit infrastructure.
• The state is implementing projects ranging from clearly marked crosswalks where people actually want to cross the street to new roundabouts that improve traffic flow and slow driving speeds.
• The state has also put up a solar snow fence along a portion of Interstate 94. The fence, made of small solar panels, reduces the amount of snow that blows onto the road, which decreases maintenance needs while generating electricity.

 

Q&A

 

Q: For Congressional staff who do not work directly on transportation issues, why is it important and beneficial to still pay attention to the surface transportation reauthorization?

Pérez

• Transportation affects everyone.
• With limited funding, tough choices will have to be made during this next reauthorization. Adding diverse viewpoints to the discussion, especially from people not entirely focused on transportation, will help maximize outcomes for everyone.

Vaidyanathan

• The second largest cost for American households is transportation fuel, which can be up to 10% of their monthly budget.
• Transportation policy cannot be created in a vacuum. A usable, accessible, and functional transportation system also considers housing and land use issues.

Boysko

• Constituents care about these issues on a daily basis. Getting from point A to point B, picking kids up from school, getting to work, going to church, and every other seemingly small trip adds up to create a mobile life.
• National security is a concern. In the case of Hampton Roads and Norfolk, Virginia, bridges and roads need to be functional to have a way for people to access the naval area.

Dallman

• Transportation connects people to where they want to go, whether that means receiving healthcare, grabbing food, or anything else. It is the thread that weaves our communities together.

 

Q: Less than three years ago, the IIJA became law. Did that benefit you in your states?

Dallman

• IIJA funding has allowed Minnesota to identify new projects with increased community input. Now, we are focused on integrating resilience and carbon reduction into that work.

Boysko

• Federal funding makes up 17.4% of the entire transportation budget in Virginia, so it is essential for the planning and implementation of projects.

Pérez

• Usually funding goes from the federal government to the states. However, IIJA presented the opportunity for money to go directly to localities to tackle challenges on the ground. There are a lot of benefits of this model, but a drawback is that some localities have less capacity to access and manage funding directly from the federal level.
• The Federal Railroad Administration has historically been a safety organization, but with IIJA money, they were able to make investments in passenger and freight systems.
• It is also important for policymakers to be mindful of the reality that, despite the significant investments from IIJA, the United States is still seeing increased roadway deaths, emissions, and congestion.

 

Q: Can you name a few examples of things you would like to see kept in this next reauthorization and things that should be changed?

Vaidyanathan

• Both IIJA’s climate and equity components and the increase in funding for technical assistance for communities that have struggled to access federal funding are benefiting people on the ground.
• Flexibility for states is good, but there are questions about what could be done when states use funding in ways that are not in line with the goals of the program.
• Data transparency is important so stakeholders and policymakers can analyze and understand the impacts of laws like the IIJA.

Boysko

• There are more needs than funds. For example, the Metro that runs through Maryland, D.C., and Virginia is the only major transit system in the country without a dedicated funding source. A federal contribution towards the operations of this system would make sure it stays solvent.

Pérez

• Transportation systems across states are very different. Even when states and regions are required to produce Transportation Improvement Programs that list all their planned investments and funding sources, there is little standardization across states, so the U.S. Department of Transportation cannot compare where money is going and what it is being spent on. This reporting system could be much more efficient and transparent.
• Some policies in place block flexibility in how funding is spent. For example, in Puerto Rico, the Territorial Highway Program is exclusively car-dominated with no leeway for funding to be spent on walking, biking, or transit infrastructure.

 

Q: What ways are there to make the Highway Trust Fund solvent other than an electric vehicle tax?

Boysko

• A miles-used program signs up participants to pay a highway use fee on a per-mile basis. This is becoming a more appealing, sustainable process as fuel efficiency increases.

Vaidyanathan

• Connecting the gas tax to inflation would help, especially since it has not been raised in several years.

Pérez

• If the United States is still getting negative outcomes, why are we asking for more money? We need to live within our means and rethink how to improve outcomes before asking for more money from taxpayers.

 

Q: The last surface transportation bill became an infrastructure bill and included provisions that are not considered surface transportation-related. What is the expectation this year for a transportation bill to accept add-ons? What is the outlook for a surface transportation bill in the next year to two years?

Pérez

• A bill that is inclusive of broader investments that boost the transportation system is great. For example, when supporting electric vehicles, there also needs to be support for the electric grid. Housing and land use innovations also maximize transportation investments.
• The Highway Trust Fund is not solvent. Congress has pulled $650 billion from the general trust fund to keep it afloat. Solving the revenue problem will be paramount to figuring out what the reauthorization can comprise.

Vaidyanathan

• What is going to happen will depend on what can be agreed upon in the House and Senate. IIJA funding ends in fiscal year 2026, and there is enough funding to go through fiscal year 2028, so there may be an extension instead of a newly negotiated bill.

Boysko

• Transportation does not exist in a vacuum. Electrifying the grid is important as is broadband infrastructure and access to technology.

Dallman

• Transportation is influenced by and influences other sectors. Minnesota is looking at the nexus of land use and the transportation system.
• People tell us that they value convenience and affordability, so in the reauthorization there should be a flexibility in how mobility is supported.

 

Compiled by Hadley Brown and edited for clarity and length. This is not a transcript.

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