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Biden says: carbon neutrality in the construction chain by 2050
Biden says: carbon neutrality in the construction chain by 2050
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Dozens of transport and infrastructure groups have warned President Joe Biden that his plan to suspend the federal gas tax will jeopardize road maintenance and upgrades.

The Americans for Transportation Mobility (ATM) coalition and the Transportation Construction Coalition (TCC) said that Biden's call for Congress to suspend the 18.4 cent per gallon tax for three months would have a knock on effect for American roads, bridges, transit systems and jobs.

Joe Biden Warned Gas Tax Holiday Threatens Jobs, Vital Infrastructure

The taxes fund road and public transport infrastructure through the Highway Trust Fund (HTF), but a White House fact sheet said suspending the levy for three months was essential to help Americans deal with soaring gas prices caused by "(Vladimir) Putin's war in Ukraine."

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However, in a letter to Biden, 33 groups said that the gas tax holiday, costing around $10 billion, risks undermining funding for the HTF, "which is essential for our economy's long-term, sustained growth."

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It said that Biden's plan would also "undermine efforts" to create jobs and realize the investments made under the Infrastructure Investment and Jobs Act (IIJA).

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Letter Expressing Concerns
The letter sent Wednesday said the cut in HTF revenue brought about the gas tax holiday "also jeopardizes the certainty necessary for our state and local partners to plan long-term projects and the association hiring and equipment purchasing required."

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The American Council of Engineering Companies, the American Public Transportation Association and the American Trucking Associations were among the 33 signatories to the letter, which said the tax holiday "would very likely hurt efforts to improve the safety and condition of our roadways, bridges, and transit systems."

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The CEO of another of the letter's signatories, Portland Cement, described Biden's proposal as "the wrong decision at the wrong moment."

"Removing the funding from the gas tax will strangle the IIJA before it is even up and running," Michael Ireland said in a statement to Newsweek.

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America's cement manufacturers have committed to reaching carbon neutrality in the construction chain by 2050 and Ireland said that this aim and the sustainability goals of the IIJA "dovetail nicely."

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"However, achieving these goals requires significant funding," he said, noting that "the gasoline tax is crucial for meeting these funding needs."

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After peaking at $5.016 per gallon on June 14, the national average for gas prices eased to $4.955 on Thursday. That's still much higher than the $3.069 cost about a year ago.

It has put Biden under pressure to help ease pain at the pump for Americans who are also dealing with consumer inflation hitting a 40-year high last month.

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