On Wednesday, Senator James Inhofe (R-Oklahoma), chairman of the Senate Environment and Public Works Committee, announced that he plans to introduce legislation that would reform the way highway funds are distributed. Under the current surface transformation law, TEA-21, states are guaranteed a minimum 90.5% of the taxes that they send to the Highway Trust Fund. The Fund derives most of its revenue from the 18.4-cent-per-gallon federal gas tax.

Inhofe plans to introduce legislation that would raise the guaranteed minimum level of funds to 95%. The change in law would necessitate that lawmakers find alternative sources of revenue for the Highway Trust Fund, raise the current federal tax on gas, appropriate additional monies to states for earmarked projects or redistribute highway funds that are distributed to states. If Inhofe's proposal placed any state in jeopardy of losing highway funds, the plan would certainly have trouble garnering broad support and would face many obstacles.

Currently, Inhofe’s plan enjoys broad congressional support, including Rep. Don Young (R-Alaska), chairman of the House Transportation and Infrastructure Committee. Also, Sen. Christopher Bond (R-Missouri), said it is "absolutely essential" to increase the minimum guarantees. Both Inhofe and Bond come from what are considered 'donor states' because their respective states contribute more funds to the Highway Trust Fund than they receive in annual highway funds. With regard to the inequity, Inhofe stated "this is a moral issue for me" and "I plan to work with my colleagues and the administration, to find the resources we need to pay for transportation priorities."

The initiative that Inhofe is set to introduce might be included in the overall highway reauthorization bill as a provision or amendment, when such a measure is debated later this year.