The House Committee on Transportation and Infrastructure has raised concerns over the slow pace at which the Department of Transportation (DOT) is distributing Infrastructure Investment and Jobs Act (IIJA) funds. Despite receiving over $364 billion since the enactment of IIJA, the DOT has only obligated a little over half of the funds and outlaid a mere 27% of the available funds. This slow distribution of funds has sparked worries within the committee, as infrastructure projects across the nation are in dire need of financial support.
During a recent committee hearing featuring testimony from DOT Secretary Pete Buttigieg, discrepancies in data interpretation were brought to light. While Committee Chair Rep. Sam Graves expressed concerns over the slow distribution of funds, Secretary Buttigieg provided a different perspective. According to Buttigieg, the DOT is approximately halfway through the five-year authorization period, and has already allocated roughly half of the available funds. Despite this, Buttigieg acknowledged that there is room for improvement in streamlining the process of tapping into the funds and ensuring efficient distribution to the intended projects.
One of the challenges highlighted during the committee hearing was the complex relationship between the Highway Trust Fund and electric vehicles that do not contribute to it through the federal gasoline tax. With the rise of electric vehicles and the decline in gasoline tax revenue, many states have taken matters into their own hands by increasing gas taxes to offset the loss in revenue. However, there is no federal-level solution to address this growing issue. Secretary Buttigieg emphasized the need for Congress to address this issue during the 2026 vote on future reauthorization, and to decide whether the user-pays principle should be upheld or alternative funding mechanisms should be explored.
In an effort to address the issue of excess toll credits and encourage cross-state cooperation, Rep. Chris Pappas proposed the establishment of a toll credit exchange market as part of the IIJA legislation. This exchange market would enable states to sell excess toll credits to cover the match required for federally funded projects, thereby increasing efficiency and utilization of available resources. While the concept has garnered support, Secretary Buttigieg highlighted the challenges involved in implementing such a program and emphasized the need for coordination and collaboration among states to make it a success.
The DOT recently announced $1.8 billion in awards from the Rebuilding American Infrastructure with Sustainability and Equity discretionary grant program for 148 projects nationwide. These grants aim to support infrastructure projects that promote sustainability and equity while addressing critical needs across the country. Secretary Buttigieg emphasized the value of innovative programs like the grant program and highlighted the collaborative efforts involved in selecting and funding projects. He noted that the success of these initiatives relies on the collective efforts of stakeholders at all levels of government.
The House Committee on Transportation and Infrastructure has raised valid concerns regarding the slow distribution of infrastructure funds and the need for increased efficiency in utilizing available resources. While progress has been made in allocating funds and supporting critical infrastructure projects, there is still room for improvement in streamlining processes, addressing funding challenges, and fostering innovation in infrastructure development. As the nation continues to grapple with aging infrastructure and evolving transportation needs, it is essential for government agencies and lawmakers to work together to ensure timely and effective implementation of infrastructure projects for the benefit of all Americans.