NAPA member testifies at hearing on Highway Trust Fund solvency
NAPA membership was once again on Capitol Hill making the case for supporting the asphalt pavement industry, this time as part of a House Transportation and Infrastructure Subcommittee on Highways and Transit Hearing titled “America Builds: The Need For A Long Term Solution For The Highway Trust Fund.”
Ty Johnson, president of Fred Smith, a Construction Partners Inc. company, testified on Tuesday, April 29 as part of a five-person panel that also included representatives on behalf of the American Association of State Highway and Transportation Officials (AASHTO) and the Eno Center for Transportation.
“We were thrilled to have Fred Smith Company’s President Ty Johnson represent NAPA before a consequential Congressional hearing on the financial health of the Highway Trust Fund (HTF),” said NAPA Vice President for Government Affairs Nile Elam. “NAPA has long advocated for a durable user-fee system that continues to advance federal infrastructure support throughout the national surface transportation network, and Ty’s testimony reiterated those needs and how we must ensure all users of our highways and roads pay into the HTF. We were pleased so many Members on the Committee asked Ty about the asphalt industry’s impact from federal funding certainty, and how our pavements stretch federal dollars further through increased deployment of reclaimed asphalt pavement (RAP) and advancing recycled pavement mixes.”
Johnson spoke on behalf of NAPA, beginning his testimony by noting how the Highway Trust Fund, once a basic tenet of federal infrastructure funding, has dwindled in the decades since the gas tax was last adjusted. He shared the four most viable user fee solutions that are available, and how the asphalt pavement industry is already leveraging scarce resources to support overlooked costs of road construction, like work zone safety.
Great to hear Ty Johnson, President of Fred Smith Co., speak on behalf of NAPA before the House Subcommittee on Highways & Transit yesterday. He called for long-term solvency of the Highway Trust Fund—critical for roads, jobs, and communities. @CPI_ROAD pic.twitter.com/ndCw4TmFx5
— National Asphalt Pavement Association (@NAPATweets) April 30, 2025
Johnson noted that federal gas tax increases or indexing, registration fees for electric vehicles (EVs), a national vehicle miles traveled (VMT) fee, and tiered national gross vehicle weight (GVW) fees were all options that the T&I Committee has considered in the past, but said there was no one approach that would solve the HTF’s challenges.
“While no one solution will resolve HTF solvency on its own, we must be willing to consider an array of options in tandem,” he said. “This committee has a unique opportunity to draft a highway reauthorization package that bolsters the HTF not just for a few years, but establishes a durable financial foundation for decades to come and for generations of Americans reliant on a world-class surface transportation system. The asphalt industry is eager to work with you as these options develop and work with other elected officials to support these proposals in a future highway reauthorization package.”
Although Johnson said it was ultimately up to Congress to determine how best to proceed, he suggested there was an “overwhelming” economic argument for properly funding the HTF.
“Every $1 billion invested in transportation infrastructure supports an estimated 13,000 American jobs,” he said. “In 2018, the national roadway network facilitated the transport of over $18 trillion in annual economic activity via 5.25 trillion ton-miles of freight. Many goods — whether manufactured in Detroit or imported through Long Beach or Baltimore — move on highways and roads paved with asphalt, maintained in part by the Highway Trust Fund.”
“Fred Smith Company has had the privilege to positively impact the people of NC through its construction projects by easing congestion, opening new areas for development, and providing better ride quality on major highways and thoroughfares. Smoother roads mean the pavements last longer compared to rough surfaces, and for commuters this translates to less wear and tear on their vehicles, mitigating their own out-of-pocket maintenance costs.”
Fred Smith President Ty Johnson
T&I Chairman Sam Graves (R-Missouri) referenced some of Johnson’s suggested solutions in his opening testimony, particularly when it came to EVs, as part of previewing the upcoming reconciliation bill the two houses of Congress expect to vote on later this year.
“Nearly 40 states already have a special registration fee for EVs. It is time for the federal government to assess a fee on EVs that, for years, have not paid gasoline or diesel taxes, the primary source of Highway Trust Fund revenues,” Graves said, going on to reference the reconciliation package proposal, which “continues the user-pays principle and ensures EVs no longer get a free ride on our highways.”
“Let me close by once again underscoring the significance of this proposal. The Trust Fund is broken. Our reconciliation bill will take the first step towards fixing it, unlocking the path towards permanently fixing the Trust Fund. This gives our committee a significant head start in our reauthorization process and sets us up for success. We must act now to save the Trust Fund before it’s too late.”
Transportation & Infrastructure Chairman Sam Graves
Highways and Transit Subcommittee Chairman David Rouzer (R-North Carolina) addressed the HTF in his remarks, as well, noting the deficit that is annually covered by fund transfers.
“During the most recent fiscal year, the Highway Trust Fund collected nearly $50 billion in revenues and interest but spent $70.6 billion, a deficit of more than $20 billion,” Rouzer said. “Without a serious solution, our state, local, and private sector partners risk losing a reliable funding source critical to project delivery and our national economy. While General Fund bailouts have offered short-term relief at the expense of the individual American taxpayer, they do not address the long-term challenges that plague the Highway Trust Fund.”
“The last several surface transportation authorization bills have continued to authorize highway and mass transit authorizations beyond what the Highway Trust Fund can reasonably support. The current surface transportation law, the Infrastructure Investment and Jobs Act, increased Highway Trust Fund spending by more than 36 percent, but made no reforms to revenue streams, resulting in a $118 billion General Fund transfer to cover the gap.”
Highways and Transit Subcommittee Chairman David Rouzer
Interested in hosting a member of Congress at your asphalt plant or job site?
NAPA’s Government Affairs team can help!
NAPA has the resources to support your efforts to build strong relationships with your elected officials while also creating policy champions that will help safeguard the longevity of the asphalt pavement industry. Email Vice President for Government Affairs Nile Elam or Government Affairs Director Mitch Baldwin to learn more.
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