Number: R40053 Title: Surface Transportation Program Reauthorization Issues for the 111th Congress Authors: John W. Fischer, Coordinator, Specialist in Transportation Policy Abstract: The most difficult issue likely to be considered during reauthorization is how to finance it. The highway trust fund and the revenue sources that feed it have been a reliable mechanism for financing highway and transit programs for five decades, but no more. Almost all transportation industry observers see a need for a larger federal contribution to national infrastructure creation in the years ahead. For a number of reasons discussed in this report, fuel taxes, which provide most of the money for surface transportation are unlikely to provide a foundation for this desired growth, even if Congress were to raise them modestly. The choice for policymakers, therefore, is to find new sources of income for an expanded, program, or alternately, to settle for a smaller program that might look very different than the one currently in place. Debate on the specifics of the highway program will focus on the donor-donee funding distribution issue, earmarking, and possible programmatic reorganization. Specific programs, such as the highway bridge program, can be expected to receive extensive congressional attention due to public concerns about the condition of the nation's transportation infrastructure. Pages: 40 Date: December 4, 2008