page_title: Interstate Highway System
section_title: Financing
hierarchical_section_title: Interstate Highway System / Financing
caption_attribution_description: A view of Interstate 75 during landing at Atlanta, Georgia.
context_page_description: The Dwight D. Eisenhower National System of Interstate and Defense Highways, commonly known as the Interstate Highway System, is a network of controlled-access highways that forms part of the National Highway System in the United States. Construction of the system was authorized by the Federal Aid Highway Act of 1956. The system extends throughout the contiguous United States and has routes in Hawaii, Alaska, and Puerto Rico.
  The U.S. federal government first funded roadways through the Federal Aid Road Act of 1916, and began an effort to construct a national road grid with the passage of the Federal Aid Highway Act of 1921. After Dwight D. Eisenhower became president in 1953, his administration developed a proposal for an interstate highway system, eventually resulting in the passage of the Federal Aid Highway Act of 1956. Construction of the Interstate Highway System was proclaimed complete in 1992, though some planned routes were canceled and several routes have stretches that do not fully conform with federal standards. The cost of construction of the Interstate Highway System was approximately $114 billion.
context_section_description: Interstate Highways and their rights-of-way are owned by the state in which they were built. The last federally owned portion of the Interstate System was the Woodrow Wilson Bridge on the Washington Capital Beltway. The new bridge was completed in 2009 and is collectively owned by Virginia and Maryland. Maintenance is generally the responsibility of the state department of transportation. However, there are some segments of Interstate owned and maintained by local authorities.
  About 70 percent of the construction and maintenance costs of Interstate Highways in the United States have been paid through user fees, primarily the fuel taxes collected by the federal, state, and local governments. To a much lesser extent they have been paid for by tolls collected on toll highways and bridges. The federal gasoline tax was first imposed in 1932 at one cent per gallon; during the Eisenhower administration, the Highway Trust Fund, established by the Highway Revenue Act in 1956, prescribed a three-cent-per-gallon fuel tax, soon increased to 4.5 cents per gallon. Since 1993 the tax has remained at 18.4 cents per gallon. Other excise taxes related to highway travel also accumulated in the Highway Trust Fund. Initially, that fund was sufficient for the federal portion of building the Interstate system, built in the early years with "10 cent dollars", from the perspective of the states, as the federal government paid 90% of the costs while the state paid 10%. The system grew more rapidly than the rate of the taxes on fuel and other aspects of driving (e. g., excise tax on tires).
  The rest of the costs of these highways are borne by general fund receipts, bond issues, designated property taxes, and other taxes. The federal contribution comes overwhelmingly from motor vehicle and fuel taxes (93.5 percent in 2007), as does about 60 percent of the state contribution. However, any local government contributions are overwhelmingly from sources besides user fees. As decades passed in the 20th century and into the 21st century, the portion of the user fees spent on highways themselves covers about 57 percent of their costs, with about one-sixth of the user fees being sent to other programs, including the mass transit systems in large cities. Some large sections of Interstate Highways that were planned or constructed before 1956 are still operated as toll roads. Others have had their construction bonds paid off and they have become toll-free, such as in Connecticut (I‑95), Maryland (I‑95), Virginia (I‑95), and Kentucky (I‑65).
  As American suburbs have expanded, the costs incurred in maintaining freeway infrastructure have also grown, leaving little in the way of funds for new Interstate construction. This has led to the proliferation of toll roads (turnpikes) as the new method of building limited-access highways in suburban areas. Some Interstates are privately maintained (for example, the VMS company maintains I‑35 in Texas) to meet rising costs of maintenance and allow state departments of transportation to focus on serving the fastest-growing regions in their states.
  Parts of the Interstate System might have to be tolled in the future to meet maintenance and expansion demands, as has been done with adding toll HOV/HOT lanes in cities such as Atlanta, Dallas, and Los Angeles. Although part of the tolling is an effect of the SAFETEA‑LU act, which has put an emphasis on toll roads as a means to reduce congestion, present federal law does not allow for a state to change a freeway section to a tolled section for all traffic.
caption: A view of I-75 in Atlanta, Georgia, featuring HOV lanes running alongside the median
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