Mar 23, 2017
From the Government Institute
Rebuilding, repairing, and maintaining aging transportation infrastructure is a key challenge facing governments at all levels. The Highway Trust Fund has been the federal government's primary means of funding investments in highway, bridge, and transit projects to date, but the U.S. Department of Transportation has estimated the cost of necessary repairs far exceed the annual contribution from the Highway Trust Fund.
To consider alternative funding options, decision makers need to have information that examines potential scenarios from various perspectives. This economic modeling research paper uses KPMG’s computable general equilibrium model to analyze the potential impact on the U.S. economy of a hypothetical infrastructure investment program funded by an increase in the federal fuel excise tax rate.