This Just In: Highways Are Subsidized

The Pew Charitable Trusts looked at highway revenues and found that they fail to cover highway costs. Only 51 percent of the cost of highways came from user fees in 2007, says Pew.

According to a Pew data file, 2007 highway user fees totaled to $98 billion while “non-user revenues” spent on highways totaled to $70 billion and another $25 billion came from bond issues. I’ve checked Pew’s source data (table HF-10 from Highway Statistics) and the numbers are accurate.

However, the Antiplanner has a few quarrels with Pew’s interpretation of the data. Most important, Pew counts as “user revenue” a number that the federal government identifies as “highway user revenues used for highways,” which in 2007 was $97.9 billion. But users actually paid $124.5 billion. Just because federal and state officials diverted most of the different to mass transit and non-transportation related funds doesn’t mean they aren’t paid by users.

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