OPINION:
As Congress looks ahead to the next generation of the federal surface transportation program when the Infrastructure Investment and Jobs Act expires in September 2026 the key question remains: how will we fund it? The U.S. is facing a $786 billion backlog in highway and bridge projects, with more than 70% of that needed for basic repairs. At the same time, the Highway Trust Fund is expected to run out of money by 2028 due to declining gas tax revenues, driven by more fuel-efficient vehicles and alternative fuels.
With a growing gap between infrastructure needs and transportation revenue, finding sustainable, reliable funding is critical. America’s economy, global competitiveness, national security, and overall quality of life depend on having safe, efficient, and reliable transportation systems. User-based funding methods, like tolling and road pricing, offer a fair and dependable way to pay for these services. Expanding these practices is key to ensuring the future of U.S. transportation investment.
Over the past 35 years, electronic tolling has transformed how road pricing works, making it easier and more efficient for drivers to pay for the roads they use. In-vehicle transponders and radio frequency technology allow tolls to be collected at highway speeds, without the need to slow down or pay with cash. However, a petition before the Federal Communications Commission (FCC) threatens this system by proposing to reduce the radio spectrum available for tolling, potentially interfering with toll transactions. This could lead to lower system performance, higher costs, and lost public revenue outcomes that are simply unacceptable.
To safeguard America’s transportation future, policymakers must take a two-pronged approach: modernize infrastructure funding and protect critical transportation technologies from interference.
A New Era for Infrastructure Funding
For nearly 70 years, the federal government has relied on fuel taxes to fund surface transportation, and states have done so for even longer. But this model has become unsustainable as fuel tax revenues decline, putting future federal and state transportation investments at risk. Since 2008, Congress has had to transfer over $275 billion from the general fund to keep the Highway Trust Fund solvent, leading to more uncertainty and deficit spending.
There are no free roads only roads funded by taxes or tolls. While raising new revenue is never popular, surveys show that motorists prefer paying tolls for specific projects rather than facing general tax increases. Motorists also support toll roads to improve driver options. Tolling is a voluntary, user-based fee, whereas taxes are mandatory. In 2023, tolls generated over $23 billion, allowing states and local governments to invest in critical infrastructure without relying on additional taxes. Beyond funding, tolling can also help reduce congestion, improve efficiency, and support economic development.
While policymakers consider alternatives to fuel taxes like distance-based road charges, tolling remains a proven and scalable solution. The International Bridge, Tunnel and Turnpike Association (IBTTA) supports eliminating current restrictions on tolling the interstate highway system and encourages expanding tolls for reconstruction and enhancements. We also support federal initiatives to support state and local programs in developing and implementing equitable mileage-based user fees as an alternative to fuel taxes. We urge the U.S. Department of Transportation (USDOT) to also progress the efforts of the federal Advisory Board recently appointed to advance a national pilot program of distance-based road charges. This work is crucial to address interstate challenges, like enforcement, administrative costs, standards, and interoperability.
Protecting the Spectrum for Tolling and Transportation
As funding debates continue, regulatory changes to the radio frequency spectrum also pose a threat to electronic tolling. For nearly four decades, toll operators have used the lower 900 MHz spectrum to operate toll systems. But now, the FCC is considering a petition to reallocate portions of the spectrum to support a proposed high-powered Position Navigation and Timing application and 5G broadband to address U.S. vulnerabilities with Global Positioning Systems. The proposal would also reduce the available spectrum for tolling by more than 20%. If approved, this decision risks disruption of electronic tolling and many other government, industrial, and consumer applications. It would also provide a single commercial entity with a competitive edge worth over $2 billion over other solutions that are less impactful to existing users. The consequences of moving ahead with this proposal would represent serious risks to toll collection, highway operations, and the public revenue streams that fund critical infrastructure projects.
The financial consequences of spectrum reallocation are staggering. If toll operators are forced to adapt to a disrupted signal environment, they would face an estimated $2.4 billion in equipment and system costs to replace or modify existing assets. Additionally, there will be ongoing operating expenses to retune equipment and validate system performance as the competing system expands and adds users. Reducing the available spectrum would lead to missed toll transactions, billing errors, higher operating costs, and reduced public revenueall of which could undermine public confidence in tolling systems.
A Call for Federal Action
IBTTA urges Congress, the White House, and federal agencies to advance sustainable and dedicated transportation revenue. By changing provisions in existing law that limit the use of tolling on the interstate highway system, we believe transportation investment can be enhanced and paid for by those that use and benefit from the priced facilities. With federal commitments to support state and local programs and a national pilot to develop and implement equitable mileage-based user fees, we can establish workable alternatives to failing fuel taxes. And finally, by denying the current petition for rulemaking in the lower 900 MHz band, the FCC can maintain an environment that enables current users to continue to thrive and provide significant benefits to consumers, government, and businesses.
• Kathryn Clay is Executive Director and CEO, International Bridge, Tunnel and Turnpike Association (IBTTA)
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