The federal government plays a large role in the nation’s highways through the funding of aid programs for the states and the imposing of top-down regulations. Congress passed a major highway bill in 2015 that authorized $305 billion in spending over five years, of which $226 billion was for highways and most of the rest for urban transit.

The Trump administration is promising a fresh approach to highway spending and regulation. What are the main problems with current highway policies, and what reforms should the administration pursue?

Transportation expert Gabriel Roth and I examine these questions in a new study at DownsizingGovernment.org. We review the history of federal highway interventions, describe the inefficiencies of federal aid and regulations, and discuss possible reforms.

We argue that Americans would be better off if federal highway and transit spending, fuel taxes, and related regulations were cut. The states can more efficiently tackle their transportation needs with a reduced federal role, and they would be more likely to pursue privatization and other market-based reforms.

Our primer on federal highway policies is here.