Skip to Content
Streetsblog California home
Streetsblog California home
Log In
Streetsblog USA

Sober Non-Partisan Analysis: America Wastes a Ton of Money on Highways

A good deal of the $46 billion the federal government pours into highway spending each year is going to waste, according to a new Congressional Budget Office report [PDF].

The conclusion won't surprise regular Streetsblog readers, but it's the source that's interesting. The CBO is not an advocacy group or an ideologically-minded think tank. It's a non-partisan budget watchdog charged with evaluating federal spending decisions, and it says federal highway funding is not well-spent.

For one, the CBO thinks too much is spent on road expansion and too little on maintenance. The construction of the Interstate Highway System made freight shipping and traveling between cities much more efficient, the report says, but since the system was completed in the 1970s spending on highways has been subject to diminishing returns. Current spending "has not shifted" to account for the "the importance of maintaining existing capacity," the CBO writes.

Compounding the problem is induced demand. CBO points to a recent study finding that "the addition of new lanes is likely to have little effect on congestion within 10 years" as highway lanes fill with new drivers.

In addition, what the U.S. does spend on maintenance flows disproportionally to lesser-used rural highways and not the urban interstates that carry the overwhelming majority of traffic, the CBO says. Urban interstates are in fact the only category of roads receiving federal highway funds where pavement quality is actually degrading.

Not all of the CBO's ideas about road spending are good for cities (the report recommends spending more on expanding urban interstates), but it emphasizes some policy changes that would result in big savings and smarter decisions, including more widespread use of road pricing.

Putting a price on roads could be an alternative to expensive highway widening projects, the CBO writes. For example, congestion pricing could encourage drivers on less time-sensitive trips to avoid using highways during rush hours, lessening the pressure to expand roads.

Current federal law sharply restricts what transportation agencies can charge on existing interstate highways, and "only about 7 percent of the Interstate System is composed of highways with tolls," the CBO reports. Loosening these restrictions could help America avoid wasting billions of dollars a year on highway expansions.

Stay in touch

Sign up for our free newsletter

More from Streetsblog California

Monday’s Headlines

Another study shows health benefits of biking far outweigh risks; Santa Rosa loses a freeway plan, gains a park; Take transit to the Rose Parade; More

December 23, 2024

New Metro Subway Railcars Started Service Today

Streetsblog got a special preview ride today. Have you ridden Metro's new "HR4000" heavy rail cars yet?

December 23, 2024

Letter to Readers: Happy Holidays and Thoughts on the Year’s Takeaways

2024 will be remembered as a seminal year for San Francisco streets

December 23, 2024

Streetsblog Year in Review: The Biggest Sustainable Transport News of 2024

It was a busy year in the movement to end car dependency — and there's a lot more to come.

December 23, 2024

Friday’s Headlines

New, wider sidewalks in SF's Tenderloin; Environmental groups sue CARB over biofuels; Biden sets national climate goals; More

December 20, 2024
See all posts