NGFA, Ag Groups Caution Against Truck-Only Vehicle Miles Tax

The National Grain and Feed Association (NGFA) sent a March 29 letter to leaders of the Senate Finance Committee cautioning against funding mechanisms for surface transportation legislation that would disproportionately place a burden on freight transportation.

The letter, signed by nearly 100 agricultural organizations, proposed broad-based funding mechanisms to ensure all beneficiaries contribute to upgrading and maintaining roads and bridges.

NGFA and the other groups sent the letter in response to discussions among Senate lawmakers supporting a truck-only vehicle miles tax.

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“As you work to advance a surface transportation reauthorization bill, our organizations urge you to create a legislative package that includes funding supported by all road users,” the letter stated.

“For our respective agricultural organizations, a truck-only vehicle miles tax would increase truck transportation costs, leading to lower farmgate prices and reduced market share for U.S. agriculture versus our foreign competitors.”

Meanwhile, U.S. Transportation Secretary Pete Buttigieg said this week that the administration has no plans to raise the federal gas tax or create a vehicle miles fee to pay for the $2 trillion infrastructure plan that President Biden proposed on March 31.

- By Max Fisher, Vice President of Economics and Government Relations; and Sarah Gonzalez, Director of Communications and Digital Media

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