12.2: Transportation Spending
Devolve or Privatize most transportation spending. Other Information:
Devolving or Privatizing Most Transportation Spending. Under the federal highway program, Washington collects the 18.3 cents-per-gallon
gas tax from states, subtracts a large administrative fee, and returns the remaining funds to the states with numerous strings
attached, including many requirements to spend the dollars on congressional earmarks and for specific uses that may not coincide
with local needs. The Heritage plan reforms this inherently wasteful system by devolving the highway program and gas tax to
the states, thereby eliminating the federal middleman and allowing states to retain the gas tax revenues and spend them on
their own highway priorities, provided they maintain a minimum standard of interstate highway maintenance. The Heritage plan
ends federal funding for passenger rail, saving money on projects that invariably have ridership that is far below projections
and costs that far exceed initial budgets. Amtrak subsidies are phased out over three years, the President's costly high-speed
rail program is terminated, and subsidies to for-profit freight railroads are ended. This relieves states of the upkeep and
maintenance burdens associated with rail programs that Washington is currently pressuring them to undertake. The private sector
and state governments can either take over or terminate these rail programs as they see fit. Finally, all non-safety functions
of the Federal Aviation Administration (FAA) are transferred to the private sector, and most FAA fees are eliminated. The
air traffic control system will be transferred to the private sector, where it belongs, and financed by flight ticket user
fees. The airport improvement program is also terminated, with airlines, state government, and private investment taking the
place of the federal taxpayer.
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