Therefore, the plan the President submitted to Congress called for establishment of a Federal Highway Corporation to issue bonds to pay for the Interstate System up-front, with the Federal excise tax on gasoline and lubricating oil (which then went to the general Treasury without a linkage to highways) was dedicated to bond retirement.Congress rejected this plan, but adopted a proposal to finance the Interstate System on a pay-as-you-go basis with revenue from highway user taxes.The Federal Government made Interstate Construction funds available to the State highway/transportation agencies, which built the Interstates. The States own and operate the Interstate highways. Bureau of Public Roads built the bridge under special legislation approved by President Dwight D. Although the District of Columbia, Maryland, and Virginia operate the bridge, it is owned by the Federal Highway Administration.The one exception is the Woodrow Wilson Memorial Bridge (I-95/495) over the Potomac River in the Washington area. When the first span of the replacement bridge, now under construction, is opened, the old bridge will be removed.As a result, the FHWA obligation results in reimbursements to the State for the Federal share over several years.The included a provision named after Senator Harry Flood Byrd (D-VA), the Chairman of the Senate Finance Committee, to ensure the Highway Trust Fund would contain enough money to pay the bills.The States will own the new Woodrow Wilson Memorial Bridge. The final estimate of the cost of the Interstate System was issued in 1991.It estimated that the total cost would be 8.9 billion, with a Federal share of 4.3 billion.
(In the western States with large amounts of untaxed public land, the Federal share could be increased to 95 percent.) To Top Did construction of the Interstate System contribute to the national debt?Therefore, the President proposed to increase funds for the Interstate System, while boosting the Federal share to 90 percent.Under his proposal, the States would continue paying the same amount in matching funds for the Interstate System that they had been paying under the 1954 Act. The concept of an Interstate system as we know it was first described in a 1939 report to Congress called Toll Roads and Free Roads. The ideas expressed in the "free roads" portion of the report evolved through further study and experience before approval of the authorized designation of a "National System of Interstate Highways," the legislation did not authorize an initiating program to build it.The report rejected the toll superhighway network Congress had suggested; revenue from tolls on most segments would not support the bonds issued for their construction. After taking office in January 1953, President Eisenhower made revitalizing the Nation's highways one of the goals of his first term.If sufficient funds are not available, the program must be reduced administratively in proportion to the imbalance.The Highway Trust Fund financing mechanism established in the satisfied President Eisenhower's "self-liquidating" demand.The authorized 5 million a year for the Interstate System (FYs 19), with a Federal-State matching ratio of 60-40.The increased Federal share reflected the common understanding that the Interstate System is vitally important to national goals. Eisenhower began to promote creation of a program to build the Interstate Construction Program, the Nation's Governors made clear to him that they did not want to be forced to increase State taxes to pay the additional matching funds for the national program.President Eisenhower insisted that the financing mechanism for the Interstate System be "self-liquidating," so that it could not add to the national debt.The president favored a toll highway network financed by bonds, but his aides convinced him that traffic volumes would not generate enough revenue in most corridors to repay bondholders with interest.