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Donor Model of Highway Funding: On Its Way Out?

From 2005 to 2008, almost every state got back all, if not more, of what they contributed to the federal Highway Trust Fun

by Staff
August 5, 2010
2 min to read


From 2005 to 2008, almost every state got back all, if not more, of what they contributed to the federal Highway Trust Fund
, according to a report released by the Government Accountability Office.

The only exception was Texas, which received 99.7 cents for every $1 contributed to the fund. The District of Columbia and Alaska saw the highest return, at $5.63 per $1, and $4.92, respectively. This means that every state was a donee during the first four years of the Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users (SAFETEA- LU), which authorized $197.5 billion for the Federal-Aid Highway Program for fiscal years 2005 through 2009.

The report said this was because overall, more funding was authorized and apportioned than was collected from highway users.

The distribution of funding among the states can be a contentious issue. GAO was asked to find out how contributions to the fund compared with the funding states received; what provisions were used to address rate of return issues; and what other factors affect the relationship between contributions to the fund and the funding states receive.

"Because the Federal-Aid Highway Program has operated on a 'user pay' system, wherein users contribute to the building and upkeep of the system, states have taken a strong interest in the rate of return on contributions," the report said. "States that receive less than the estimated contributions of their highway users are known as 'donor' states. States that receive more than the estimated contributions of their highway users are known as 'donee' states."

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