1. U.S. CHAMBER OF COMMERCE MAP-21 Reauthorization & the Federal Highway Trust Fund Janet F. Kavinoky U.S. Chamber of Commerce April 15, 2015

2. U.S. CHAMBER OF COMMERCE The Time is Now May 31: MAP-21 expires (again) Authorization for policy, programs, spending Sets funding levels Summer 2015: Highway Trust Fund cash receipts run short Lettings slowdown Delays to major projects Uncertainty affects business outlook

3. U.S. CHAMBER OF COMMERCE Federal Roles in Funding, Finance Formula apportionments Discretionary grants Direct Federal Funding Loans, loan guarantees, lines of credit Main program today: TIFIA National infrastructure bank/fund proposals Direct Credit Assistance Tax-exempt borrowing (muni bonds, PABs) Tax credit bonds Build America Bonds Federally-subsidized Borrowing Tolling new capacity, congestion pricing Incentives/penalties Capitalize state infrastructure banks Policy Tools

4. U.S. CHAMBER OF COMMERCE

6. Simply to maintain current levels of direct federal funding for highways and transit requires $91 billion in new revenues over the next six years (2016-2021). Required to Maintain Spending

7. U.S. CHAMBER OF COMMERCE What Is Needed? $100.2 $65.3- 86.3 $123.7- 145.9 $16.5$18.5 $22.0- 24.5- 2010 Capital Spending Maintain Conditions/ Performance Improve Conditions/ Performance Highways Transit

8. U.S. CHAMBER OF COMMERCE Three Broad Options Near Term Cut spending to revenue-supported levels Maintain or increase through general funds Identify new and/or increase existing transportation-related taxes and fees

9. U.S. CHAMBER OF COMMERCE The Five-Star Revenue Source Transportation-related taxes and fees Dedicated, ongoing revenue streams Sustainable source, structure Adequate for maintaining or full funding Federally-collectible 1 2 3 4 5

10. U.S. CHAMBER OF COMMERCE Long-Term Question: How to Pay

11. U.S. CHAMBER OF COMMERCE Vehicle Miles Traveled 1971-2014

12. U.S. CHAMBER OF COMMERCE Janet Kavinoky U.S. Chamber of Commerce jkavinoky@uschamber.com www.fasterbettersafer.org