Construction industry groups are battling to fend off a possible resurfacing of proposals to make deep cuts in the federal gasoline and diesel taxes and “devolve” to the states more responsibilities for the federally aided highway program.
The last big devolution proposal was the Transportation Empowerment Act, which Sen. Mike Lee (R-Utah) and Rep. Tom Graves (R-Ga.) introduced in 2013. The proposal, backed by conservative groups such as Heritage Action for America, sought to phase down the 18.4¢-per-gallon federal gas tax over five years, to just 3.7¢, and cut the 24.4¢ diesel tax to 5¢. When the bill was introduced, Graves contended that it would "streamline the highway program, allowing more projects to be completed at a lower cost" by each state.