Last Tuesday, Rep. Jake Fey (D–Tacoma), Chair of the House Transportation Committee and the House Democrats released their $26 billion transportation revenue package. The package includes significant investments in transportation maintenance, preservation,
economic recovery, carbon reduction, and fish passage barrier removal.
The proposal, largely informed by the 90 stakeholder meetings the House Transportation Committee members conducted over the interim, raises new revenue without new borrowing through bonds. The proposal includes the following revenue sources:
- Fuel tax: increase of $0.18
- $0.10 increase in 2021
- $0.08 increase in 2022
- Gas tax will be indexed to inflation following 2022
- Carbon fee:
- $15 per ton for years 2021-23
- $20 per ton for years 2023-25
- $25 per ton for years 2025-27
- Prior to increasing the fee beyond $25 per ton, the state must implement a review process
- Rental car sales tax: increase of 1%
- Various weight and user fee increases
The transportation package emphasizes several key investments in local government infrastructure. The proposal includes $6.7 billion for state and local projects over the next 16 years, as well as $4.6 billion for basic maintenance and preservation and
over $800 million for the Transportation Improvement Board. The package also includes $3.5 billion in dedicated funding for state and local fish passage barrier removal, honoring previous commitments upheld by the Supreme Court.
Finally, the proposal includes $8 billion for carbon reduction initiatives, including:
- Ferry electrification;
- Bike and pedestrian grants and projects;
- Complete streets grants;
- Vanpool grants;
- Green transit grants;
- Amtrack and locomotive modernization;
- Safe route to schools grants;
- Transit fare access grants; and
- Regional mobility transit grants.
The press conference can be viewed here, and a summary of the full proposal can be found here.