WASHINGTON (Feb. 28, 2014) — President Barack Obama and House Ways and Means Committee Chairman Dave Camp, R-Mich, have laid out proposals to shore up the federal Highway Trust Fund, the source of funding for the nation's transportation infrastructure that is in danger of running dry this summer.
Mr. Obama presented his vision, an elaborate, $302 billion four-year plan, during a Feb. 26 speech at the Union Depot train station in St. Paul, Minn., while Mr. Camp released a released a tax-reform plan the same day that included a $126.5 billion provision to fund highway and infrastructure investment.
Mr. Obama's plan is designed to provide a quick fix for the Highway Trust Fund, which is expected to run out of money this summer during the peak season to build and repair U.S. roads and bridges, and also succeed the previous two-year transportation bill that expires Nov. 1.
A key part of Mr. Obama's transportation funding plan is a one-time, $150 billion payment from pro-growth business tax reform to be dedicated specifically to fund surface transportation programs and infrastructure investment.
"This amount is sufficient to not only fill the current funding gap in the Highway Trust Fund, but increase surface transportation investment over current projected levels by nearly $90 billion over the next four years," the White House said in a press release.
Mr. Obama is committed to working with Congress on a bipartisan basis to achieve passage of a four-year transportation reauthorization bill this year, the White House added.
Mr. Camp's transportation funding recommendations are part of a larger tax reform plan he said would create up to 1.8 million private sector jobs and increase the Gross Domestic Product by up to $3.4 trillion.
The Camp plan would dedicate $126.5 billion to fully fund the Highway Trust Fund and the projects it supports for the next eight years, according to a House Ways and Means press release.
The plan would also create a new individual and corporate tax rate structure, allow larger standard deductions and child tax credits, allow simpler taxation of investment income and repeal the Alternative Minimum Tax, Ways and Means said.