• Research
  • Emissary
  • About
  • Experts
Carnegie Global logoCarnegie lettermark logo
DemocracyIran
  • 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
Program mobile hero image

Program

Sustainability, Climate, and Geopolitics

The Sustainability, Climate, and Geopolitics Program explores how climate change and the responses to it are changing international politics, global governance, and world security. Our work covers topics from the geopolitical implications of decarbonization and environmental breakdown to the challenge of building out clean energy supply chains, alternative protein options, and other challenges of a warming planet.

Learn More

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 Endowment for International Peace

  • Commentary
    Strategic Europe
    Trump Turns NATO into a Tool of Coercion

    The full list of humiliations Europe has endured since Donald Trump returned to the White House makes for grim reading. But Washington’s adversarial approach to its allies undermines its own power base.

      • Rym Momtaz

      Rym Momtaz

  • Climate desalination plant Saudi Arabia
    Paper
    Ecological Statecraft in the Midst of War: Water, Regeneration, and the Future of Gulf Security

    The U.S.-Iran war has crossed a dangerous threshold: water infrastructure in the Gulf is now a target. Ecological statecraft is no longer peripheral to security, it's part of its foundations.

      • Ali Bin Shahid

      Olivia Lazard, Ali Bin Shahid

  • Commentary
    Introduction: Beyond Climate Displacement

    Across the Middle East and North Africa, climate stress interacts with economic fragility, governance failures, social marginalization, and conflict.

      Camille Ammoun

  • Commentary
    Diwan
    Pushing Beirut into an Armed Conflict With Hezbollah Is Insane

    The party’s domestic and regional roles have changed, so Lebanon should devise a disarmament strategy that encompasses this.

      Michael Young

  • Article
    Palestine’s Climate Change Planning Faces Its Limits

    Barriers ranging from weak legal frameworks to ongoing, occupation-related limitations are constraining Palestine from achieving its ambitious climate targets.

      Joy Arkeh, Nabil Nasser

Get more news and analysis from
Carnegie Endowment for International Peace
Carnegie global logo, stacked
1779 Massachusetts Avenue NWWashington, DC, 20036-2103Phone: 202 483 7600
  • Research
  • Emissary
  • About
  • Experts
  • Donate
  • Programs
  • Events
  • Blogs
  • Podcasts
  • Contact
  • Annual Reports
  • Careers
  • Privacy
  • For Media
  • Government Resources
Get more news and analysis from
Carnegie Endowment for International Peace
© 2026 Carnegie Endowment for International Peace. All rights reserved.