• Research
  • Strategic Europe
  • About
  • Experts
Carnegie Europe logoCarnegie lettermark logo
EUUkraine
  • Donate
{
  "authors": [
    "Shin-pei Tsay"
  ],
  "type": "legacyinthemedia",
  "centerAffiliationAll": "dc",
  "centers": [
    "Carnegie Endowment for International Peace"
  ],
  "collections": [],
  "englishNewsletterAll": "ctw",
  "nonEnglishNewsletterAll": "",
  "primaryCenter": "Carnegie Endowment for International Peace",
  "programAffiliation": "SCP",
  "programs": [
    "Sustainability, Climate, and Geopolitics"
  ],
  "projects": [],
  "regions": [
    "North America",
    "United States"
  ],
  "topics": [
    "Climate Change"
  ]
}

Source: Getty

In The Media

Time to Reassess Our National Transportation Program

Congress should reassess the national transportation program to support innovative transportation projects on a local level.

Link Copied
By Shin-pei Tsay
Published on Jan 6, 2012

Source: Hill

Innovative transport projects have caught on in a big way, especially with America’s towns and cities. But national policies lag far behind. When it comes to transportation policymaking, it’s time for Congress to stroll along Main Street.
 
All over the country, we hear the trumpeting of local policies designed to promote walking and biking, the rising popularity of urban bike share systems, even the raising of local taxes and issuing of bonds to support local public transit service. Indeed, more of America’s mayors and city managers, together with their departments of transportation and spurred on by community groups, are finding new and better ways of utilizing their streets.
 
While local efforts are significant and critical, a wholesale paradigm shift is needed to accelerate the upgrade of the U.S. transportation system. Many local officials will tell you that their most innovative transport projects are either stalled in or workarounds of government red tape and budget confusion. Such barriers must be removed if we hope to provide better transportation options to more places across the country. Every community deserves a functioning economy, cleaner air, safer streets, and less gridlock. Even during the recent recession, the cost per retail square foot in Times Square quickly rebounded after the pedestrianization of Broadway and now competes with the most expensive retail space in New York City, Madison Avenue.

Thinking local is not enough. Flourishing local efforts must be bolstered by a sound national transportation policy complete with a long-term strategic vision, guided with performance benchmarks, and underpinned by adequate revenue sources.
 
To help address this need, the Carnegie Endowment for International Peace assembled three bipartisan leaders, former senator Bill Bradley, former governor and secretary of homeland security Tom Ridge, and former comptroller general Dave Walker to examine opportunities to change the course of transportation through its funding mechanism. In the culminating report, Road to Recovery: Transforming America’s Transportation, we found that not only does the current transportation system contribute to the national deficit by as much as $100 billion annually, it no longer gives the country a return on investment. We also found that there is a light at the end of the tunnel; reform the program, and you not only upgrade the nation’s transportation system to maintain global competitiveness and increase mobility choices, you reap co-benefits in health care cost savings, reduce defense spending, and make significant progress on environmental mitigation.
 
Funding must be fair, transparent, and sustainable. The transportation program’s primary revenue source is currently the federal gas tax, which is unsustainable. Over time the gas tax has not kept pace with increasing costs of maintenance and construction. As for transparency, recent polls show that the majority of Americans don’t know what the federal gas tax is—it’s 18.4 cents per gallon federally; across the country, total gas tax including local, state, and federal average about 43 cents. Moreover, 60 percent of Americans believe that it goes up every year—in reality its last increase was in 1993 for deficit reduction reasons. Regarding fairness, economic research concludes that the gas tax is a drop in the bucket compared to the overall cost of driving. Those who believe that motorists alone should benefit from road improvements fail to recognize the full cost of driving and the benefits of pricing it fairly.
 
It’s time that those who benefit the most—oil companies—shoulder more of the burden of the nation’s transportation system. More than 70 percent of our oil supply is consumed by transportation. We send $161 billion per year to countries classified as dangerous or unstable by the state department to continue this consumption.
 
We recommend that a per-barrel oil fee be added to fill the funding gap. An upstream oil fee would be accompanied by a variable gas tax at the pump. When the global price per barrel increases, the gas tax is abated. When the global price goes down, gas tax slowly increases. For drivers, this creates a predictable price band for gas. For the country, it funds overall mobility. In short, this revenue strategy is a good, immediate solution to filling the funding gap until other options can be implemented.
 
Congress persisted in delaying action on a new transportation bill and the gas tax over the last year. Last fall, the super-committee, charged with coming up with a deficit reduction package, petered out without any results. At the same time, a group of seven former U.S. transportation secretaries and assorted experts came together at the University of Virginia’s Miller Center to discuss the federal transportation policy impasse. The conclusion: “go local.”
 
This March 2012 when the latest transportation bill expires, or more realistically in 2013 after the presidential election, Congress has another opportunity to reassess the national transportation program—its vision, goals, structure, and funding.
 
Federal policymakers need only to look down Main Street. Towns, rural areas, and cities across America are all in on the action, developing local solutions to mobility problems that cannot wait any longer. Collectively, their actions speak volumes about untapped ingenuity that promises a brighter future for U.S. transportation.
 
Congress should genuinely reform and work to fund a federal program that supports local efforts. Our prosperity and climate and security solutions can all be found on Main Street.

This article originally appeared in The Hill.

About the Author

Shin-pei Tsay

Former Nonresident Associate, Energy and Climate Program

Shin-pei Tsay was a nonresident associate in the Energy and Climate Program at the Carnegie Endowment for International Peace.

    Recent Work

  • Report
    Rethinking Urban Mobility: Sustainable Policies for the Century of the City

      Shin-pei Tsay, Victoria Herrmann

  • Article
    A New Focus for U.S.-China Cooperation: Low-Carbon Cities

      Shin-pei Tsay, Victoria Herrmann

Shin-pei Tsay
Former Nonresident Associate, Energy and Climate Program
Shin-pei Tsay
Climate ChangeNorth AmericaUnited States

Carnegie does not take institutional positions on public policy issues; the views represented herein are those of the author(s) and do not necessarily reflect the views of Carnegie, its staff, or its trustees.

More Work from Carnegie Europe

  • Commentary
    Strategic Europe
    The Fog of AI War

    In Ukraine, Gaza, and Iran, AI warfare has come to dominate, with barely any oversight or accountability. Europe must lead the charge on the responsible use of new military technologies.

      Raluca Csernatoni

  • Commentary
    Strategic Europe
    How to Join the EU in Three Easy Steps

    Montenegro and Albania are frontrunners for EU enlargement in the Western Balkans, but they can’t just sit back and wait. To meet their 2030 accession ambitions, they must make a strong positive case.

      Dimitar Bechev, Iliriana Gjoni

  • Commentary
    Strategic Europe
    Taking the Pulse: Can NATO Survive the Iran War?

    Donald Trump has repeatedly bashed NATO and European allies, threatening to annex Canada and Greenland and deploring their lack of enthusiasm for his war of choice in Iran. Is this latest round of abuse the final straw?

      • Rym Momtaz

      Rym Momtaz, ed.

  • Commentary
    Strategic Europe
    On NATO, Trump Should Embrace France Instead of Bashing It

    Donald Trump’s repudiation of NATO goes against the Make America Great Again vision of a U.S.-centered foreign policy. If the goal is to preserve the alliance by boosting Europe’s commitments, leaning into France’s vision is the most America First way forward.

      • Rym Momtaz

      Rym Momtaz

  • Commentary
    Europe Doesn’t Like War—for Good Reasons

    The wars in Ukraine and the Middle East are existential threats to Europe as a peace project. Leaders and citizens alike must reaffirm their solidarity to face up to today’s multifaceted challenges.

      Marc Pierini

Get more news and analysis from
Carnegie Europe
Carnegie Europe logo, white
Rue du Congrès, 151000 Brussels, Belgium
  • Research
  • Strategic Europe
  • About
  • Experts
  • Projects
  • Events
  • Contact
  • Careers
  • Privacy
  • For Media
  • Gender Equality Plan
Get more news and analysis from
Carnegie Europe
© 2026 Carnegie Endowment for International Peace. All rights reserved.