UPDATE Act to Replace MAP-21 – Trucking Industry Leaders Support Proposed Fuel Tax Increase

UPDATE Act to Replace MAP-21 – Trucking Industry Leaders Support Proposed Fuel Tax Increase

The nation’s aging infrastructure has been an important topic for the transportation industry and federal government. Recently, the House of Representatives Ways and Means Committee drafted a new piece of legislation titled the UPDATE Act, or Update, Promote, and Develop America’s Transportation Essentials. This bill would replace the expiring MAP-21 funding law, and increase gas and diesel taxes by five cents per gallon from the current rates 18.4 cents per gallon for gasoline and 24.4 cents per gallon on diesel. The UPDATE Act would be initially enacted for a period of three years and attempt to improve the nation’s aging transportation system.

Although the tax increase would create a significant cost increase for trucking companies, industry leaders are optimistic as the new taxes will be used to update the nation’s aging infrastructure that trucking companies rely on every day. Leaders from the American Transportation Association, AFL-CIO, US Chamber of Commerce and more have all united in support of the bill. ATA President Bill Graves endorsed the increase citing the critical role highways and bridges play in the success of the transportation industry.

Contact us to learn more about how this cost increase will impact your transportation business and to discuss risk management strategies that could improve the bottom line.