News

House passes barge fuel tax increase

The House passed an increase in the fuel tax on barges using the Mississippi and other waterways to help finance improvements to the lock-and-dam system. The increase will move the tax from 20 cents to 29 cents per gallon and is expected to raise $27 to $36 million annually for the Inland Waterways Trust Fund.

The fund raises up to $85 million per year and is then matched by the federal government. The increase, the first in 20 years, is supported by the shipping industry as well as a number of farm groups.

The increase is included in a H.R. 647 known as the ABEL Act which authorizes tax savings accounts for people with disabilities.

The Senate has yet to act on a similar measure which has 74 cosponsors.