Since
the 1956 Highway Bill, It's Been 50 Years On a Fast Track
Pioneering
legislation set stage to build and fund America’s Interstates
1/16/2006
exclusive domain. Gov. John S. Fine of Pennsylvania was
blistering in his response the day following Nixon's speech.
"We want the federal government to get out of the gasoline
and fuel oil tax field for once and for all and now is the
time to do it before we embark on any large-scale highway
program such as the President has suggested We want to
continue unimpeded by any federal system."
This opposition to any federal
role in roadbuilding was not new. At the governors conference
in 1952, conference chairman Gov. Val Peterson of Nebraska,
expressed the consensus view by asking the rhetorical question,
"How many governors would oppose a resolution telling
the federal government to get the hell out of the road-building
business?"
The president's next move was to
appoint an advisory committee to work with the governors and
relevant cabinet agencies, to craft a comprehensive plan.
To head it, Eisenhower tapped his trusted advisor, retired
Gen. Lucius D. Clay. The committee's report, A Ten-Year National
Highway Program, was delivered to Eisenhower in December 1954.
ENR's Dec. 30, 1954, issue devoted
35 pages of coverage to the report, with graphs that showed
the rate of total investment in highways falling far behind
the actual traffic growth rate beginning in 1945, and remaining
significantly behind the projected traffic growth rate twenty
years into the future. The committee's plan called for spending
an additional $50 billion over ten years, twice the existing
rate of spending on roads. $26 billion of the additional spending
would be required to bring the 40,000 mile interstate network
up to standard, and that $26 billion would be the federal
share of the cost. The states, collectively, would have to
furnish the remaining $24 billion, while continuing their
fiscal policies to keep their regular road construction and
maintenance programs going at their existing rates.
Eisenhower's advisers disagreed
strongly over the funding mechanisms underpinning the plan.
When finally transmitted to Congress in February, the report
called for a Federal Highway Corporation to be created to
issue bonds to pay the federal share of the system. Gas tax
revenues would be used to repay the bonds and to continue
other components of the federal-aid highway program.
The midterm elections had ushered
Democratic majorities into both the House and Senate. Sen.
Harry Byrd (D-Va), chair of the finance committee, was a staunch
opponent of public debt. Under his leadership the Clay plan
was defeated. The action then moved to the House. Rep. George
Fallon's (D-Md) subcommittee on roads drafted a bill that
called for financing the interstates through increases on
gasoline, cars, trucks and tires. While all of these industries
stood to benefit from the system, they could not agree on
what proportion of the costs each would bear. After strong
lobbying, including 100,000 telegrams from truckers to members
of Congress expressing opposition, Fallon's bill went down
by a vote of 292 to 123.
The final push
The bill's prospects in 1956 were uncertain. Eisenhower suffered
a heart attack in September 1955, which raised doubts about
his ability to win reelection, or possibly run at all. And
would a Democrat-controlled Congress give a Republican president
a victory on one of his primary domestic initiatives during
a presidential election year?
During the winter of 1955-56, two
new forces entered the arena. The roadbuilding community,
which had been passive during the previous legislative session,
ignited. Speakers at the American Road Builders Association
convention in January presented a compromise plan by the trucking
association on tire taxes, and ways to free up more time so
that state highway engineers could take on a huge leap in
expected work.
The previous fall the Bureau of
Public Roads had released its designations for the final 2,200
miles of urban interstate routes in 40 states. Copies of "The
Yellow Book" (formally titled, "General Location
of National System of Interstate Highways") were sent
to each member of Congress. When Congressmen from urban areas
saw the tangible benefits they could expect, they became enthusiastic
supporters.
The revised bill established a
Highway Trust Fund, a pay-as-you-go plan which would accumulate
revenue from a three-cent gas tax, as well as excise taxes
on trucks and busses and an annual registration fee for trucks
graduated by weight. Ways and Means Committee chair Hale Boggs
(D-La) introduced the bill, saying, "[For] the first
time, the American motorist will pay these taxes with the
assurance that he will be the direct beneficiary of every
penny which he pays and he will pay with the knowledge that
every cent derived from these taxes will be devoted exclusively
to his personal convenience and safety." The House vote
was 399 to 19 in favor.
The Senate had to make some changes
to satisfy Sen. Byrd's concerns about the fund's imbalances
in later years. After two months of intense wrangling the
reconciled bill, the Federal-Aid Highway Act of 1956, was
approved 89-1 by the Senate, and by voice vote in the House.
President Eisenhower was in the hospital, recovering from
intestinal surgery, and signed it on June 29th, his last day
in the hospital, without a ceremony or photographer present.
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