US Highway Bill Stalled by Political Gridlock Pandemic Concerns

The US highway bill faces potential gridlock due to bipartisan disagreements, raising concerns in the freight industry about hindering infrastructure modernization. The pandemic's impact, including changing commuting patterns and declining gasoline tax revenues, has placed significant financial strain on state transportation departments. The bill's ultimate fate hinges on the election results and control of the Senate, potentially leading to major adjustments in future infrastructure investment directions. The outcome will have a significant impact on the nation's transportation network and economic growth.
US Highway Bill Stalled by Political Gridlock Pandemic Concerns

The five-year federal highway bill, originally set to expire on September 30, has become mired in partisan politics and will likely be postponed until 2021. With this "should-have-been-routine" legislation languishing, freight industry executives are growing increasingly anxious about the urgent need for a modern, efficient transportation network to support massive logistics operations.

"We need real progress on infrastructure to build a modern network that serves logistics and trucking companies," said Derek Leathers, vice chairman, president and CEO of Werner Enterprises, the nation's sixth-largest truckload carrier. "This should be a bipartisan issue, but the reality is frustrating. It keeps me up at night."

Like most freight industry leaders, Leathers sees little chance of pre-election compromise, blaming a lack of political will that will inevitably hurt logistics operations. "Nobody seems willing to take ownership before the election," he added. "The public wants Congress to act, not sit idle. They want bold decisions, but that requires political courage—especially difficult in an election year."

Legislative Standoff

As of this writing, the House and Senate remain deeply divided on how to proceed with replacing the FAST Act, the expiring five-year legislation. While the Senate Environment and Public Works Committee unanimously approved a $287 billion five-year surface transportation bill back in July 2019, three other key Senate committees—Commerce, Banking, and Finance—have failed to act.

The Democrat-controlled House passed its own $494 billion version on July 20 without any Republican support, a measure Senate Republicans have shown no willingness to compromise on. Republican Rep. Sam Graves, ranking member of the House Transportation Committee, has signaled that an extension is virtually certain, with Congress likely to pass a continuing resolution maintaining current funding levels.

Post-Election Prospects

After November's elections determine control of Congress and the White House, the new Congress is expected to craft a bipartisan surface transportation bill for signature by either President Donald Trump or former Vice President Joe Biden.

Some highway advocates argue the current delay might prove beneficial. The pandemic's lasting impacts—including potentially permanent shifts in commuting patterns as more Americans work remotely—could fundamentally alter infrastructure needs.

"We used to plan based on established travel patterns," said Randy Mullett, a veteran transportation consultant who has worked on previous highway bills. "But there are too many unknowns now. I'm not sure we can accurately predict future needs. This is truly unprecedented."

Federal infrastructure funding remains critical as state transportation budgets heavily depend on it, though spending priorities may shift dramatically. "I'm glad they haven't reached a deal yet," Mullett noted. "So far everything assumes travel patterns identical to the past. That may not be the case."

Pandemic Pressures

The coronavirus has already strained state transportation finances, with reduced commuting slashing gas tax revenues. South Carolina's DOT reported losing $49 million in gas tax revenue since January due to reduced driving, a pattern repeated nationwide.

Federal Highway Administration data shows June 2020 traffic volumes remained 13% below 2019 levels—a significant recovery from April's 40.2% plunge during lockdowns. In July, the American Association of State Highway and Transportation Officials requested $37 billion in emergency funding, though the House's $15 billion proposal found no counterpart in Senate measures.

The highway bill's ultimate fate may hinge on election outcomes—particularly which party controls the Senate. A Democratic-controlled Senate eliminating the filibuster could pass infrastructure measures with simple majorities, potentially including substantial ancillary spending. The nation's transportation future hangs in the balance.