Hoosiers rely on them every day – roads that cover more than 12,000 miles in Indiana.
But the money that helps pay for repairs and maintenance is running out.
Congress had a deadline of midnight Friday to act before funding for the federal Highway Trust Fund expired.
While they came up with a temporary solution, many of Indiana's leaders say Congress needs to come up with a long-term solution.
How The Highway Trust Fund Impacts Hoosier Roads
The federal Highway Trust Fund helps states pay for construction and maintenance of roads.
In Indiana, federal funds make up a little more than half of the state's $1.8 billion transportation budget.
"What INDOT does is it initially will bid the contract, will pay the contractor and then will seek reimbursement from the Federal Highway Administration to repay the amount that the feds owe us," says Will Wingfield, spokesperson for the Indiana Department of Transportation.
But if the fund dips much lower, those important reimbursements could be delayed.
"Should there be an interruption in federal highway funds, the impact would not be immediate because it's on a reimbursement basis," Wingfield says. "There would be a little bit of a delay but certainly over time we'll begin to feel those impacts."
Congress isn't letting it get to that point just yet – but it did come close.
They passed a three-month funding extension Thursday. Critics say while it's better than nothing, it still puts states in a tough spot.
"What it has caused the state to do and many states to do is to find other ways to come up with short-term funding enhancements to keep going what we're doing now." says Tim Maloney, Senior Policy Director at the Hoosier Environmental Council. "So, Indiana over the past four years has appropriated $600 million in state general funds to make up for its shortfall in transportation funding."
Highway Trust Fund Lacks Sustainable Revenue Stream
Many are hopeful Congress will pass a comprehensive, multi-year bill in the fall that will not only extend funding for highway projects, but come up with a more sustainable revenue stream for the Highway Trust Fund.
"It's been underfunded for years," says Dennis Faulkenberg, President and CEO of APPIAN transportation advisers. "It's taking in about $15 billion less than is spent each year on roads. So there has to be a general fund transfer every year just to make up the shortfall."
Every time people pull up to the pump, they're helping pay for the Highway Trust Fund. Its revenue comes from the gas tax, but the problem is cars are more fuel-efficient and fewer people are driving - so the current tax isn't enough.
It's been underfunded for years. It's taking in about $15 billion less than is spent each year on roads.
"What we've had happen over a number of years is the cost of construction materials, the cost of labor have increased over the years," Wingfield says. "But the fuel tax has pretty much stayed the same despite the fluctuating gas prices and things of that nature."
There's lots of debate about the best way to address the revenue problem.
Some say one easy way to bring in more money is to increase the gas tax.
"Probably until they figure out something better gas taxes need to be increased to the amount we need to spend on our roads," Faulkenberg says. "Long term probably something like a vehicle miles traveled tax – that you would be taxed for the actual number of miles you drive."
Others argue legislators need to take a more comprehensive approach and look at all of the options available.
"Ideally America needs a long-term, balanced transportation program that's well-funded that looks at transportation in the broadest possible context," Maloney says. "A good transportation system is about moving people and goods. It's not about favoring one particular mode of transportation. You want to do it in the most cost-effective, efficient and environmentally sustainable way."
There does seem to be consensus regarding one aspect of the Highway Trust Fund – legislators need to work hard to find a long-term solution so states can build and maintain good-quality roads.
"Historically, it's been a long-term bill – five or six years," Wingfield says. "And, we'd like to see them come back to that because that really gives the private sector the ability to invest in equipment and employees when they know there are projects on the other end that they can go after."
U.S. House Will Consider Multi-Year Bill In Fall
The U.S. Senate did approve a six-year highway funding plan Thursday, but the House won't take the bill up until after they return from August recess.
Sen. Dan Coats (R-Indiana) voted in favor of the bill despite colleagues shooting down his proposed amendment.
Coats wanted language written into the legislation that would have guaranteed Indiana got back 95 percent of its contributions to the trust fund.
In a statement, he said, "While I was disappointed my amendment was not adopted, it is more important to ensure that Indiana has the long-term certainty our state needs."
Sen. Joe Donnelly (D-Indiana) voted against the bill because he says Indiana would only get a rate of return of about 91 percent.
He released a statement saying, "I will continue to fight for the best interests of Hoosiers so that Indiana gets its fair share in federal highway funding."
Indiana is also seeking its own ways to boost transportation revenue. The Indiana Department of Transportation is in the middle of a two-year study to determine feasible alternatives.
Those could include increasing the gas tax, imposing a tax for the number of miles driven in a year or tolls.
