The Surface Transportation Assistance Act of 1982

The Surface Transportation Assistance Act included a 5-cent increase in gasoline tax.

In the fall of 1981, the worst recession since the Great Depression fell upon the United States. By November 1982, 9 million people were jobless and the unemployment rate topped 10 percent. In his State of the Union address, President Ronald Reagan proposed to Congress a two-for-one solution to address the unemployment problem and the country's crumbling infrastructure.

Proposal

Reagan said he sought greater autonomy for states. In his 1982 proposal to Congress, he suggested turning transit programs back to the states and eliminating federal-aid highway programs. The only program Reagan deemed immune to this change was the interstate system.

Result

To address increasing concern with the condition of the nation's highways, Congress, under pressure from the president, introduced the Surface Transportation Assistance Act of 1982, which authorized additional appropriations for highway projects.

Features

Contrary to the intentions articulated in Reagan's State of the Union Address, the STAA actually increased federal involvement with respect to all transit programs in addition to the interstate system. Additionally, Reagan, who opposed additional taxes, agreed to a nickel increase in the gasoline tax.

Filibuster

Because of the tax increase and additional federal interference with state systems, senators dragged out debate and delayed a vote with a filibuster. It continued for 13 days, but on December 23, 1982, the Senate approved the bill.

Impact

According to the Transportation Research Board, the STAA did not significantly increase the gross national product and, by 1984, the nation felt only a slight increase in employment. Although business sectors closely associated with highway construction benefited, the TRB found that the gas tax increase hit those with lower incomes and the unemployed the hardest.

References

• U.S. Federal Highway Administration: Palace Coup: President Ronald Reagan and the Surface Transportation Assistance Act of 1982
• U.S. Federal Highway Administration: In Memory of Ronald Reagan
• The Library of Congress: Floor Actions H.R.6211
• Transportation Research Board: Employment Impacts of the STAA of 1982
• The American Experience: The 1982 Recession

Resources

• The Library of Congress: Bill Summary H.R.6211
• Ronald Reagan Presidential Library: Remarks on Signing the STAA of 1982