What is the Highway Trust Fund, and how is it financed? Q.What is the Highway Trust Fund, and how is it financed? A.The Highway Trust Fund finances most federal government spending for highways and mass transit. Revenues for the trust fund come from transportation-related excise taxes, primarily federal taxes on gasoline and diesel fuel. In recent years, however, the trust fund has needed significant transfers of general revenues to remain solvent. Read more about What is the Highway Trust Fund, and how is it financed?
What have federal budget trends been over the short and long term? Q.What have federal budget trends been over the short and long term? A.In the long run, federal budget deficits are driven by rising interest costs and by demography and rising health care costs pushing spending above scheduled revenues. Short-term deficits have moved sharply because of shocks like the Great Recession and the COVID-19 pandemic. In addition, persistent deficits have also been driven by conscious policy choices. When events conspire to drive revenues above the trend, for example, tax cuts usually bring them down with alacrity. Read more about What have federal budget trends been over the short and long term?
What is the history of the federal budget process? Q.What is the history of the budget process? A.In 1972, President Richard Nixon impounded funds for various social programs. Nixon argued that because Congress lacked a process for controlling the federal budget, budget deficits might expand irresponsibly if the president lacked the power to block funding. Congress responded by establishing a formal budget process through the Congressional Budget and Impoundment Control Act of 1974. Read more about What is the history of the federal budget process?