Federal Policy Analysis

American Association of State Highway and Transportation Officials (AASHTO)

Since 2014, Mercator has supported AASHTO with policy research and financial modeling related to federal transportation funding. Our work for AASHTO demonstrates Mercator’s deep knowledge of national surface transportation policy and funding issues, quantitative modeling expertise, and ability deliver complex analytical results in ways that are accessible and inform decision-making.

We built and maintain a robust financial model of the federal Highway Trust Fund (HTF), which allows us to estimate the impact of surface transportation reauthorization proposals on future-year Highway Account and Mass Transit Account expenditures and balances. We develop analyses and data visualizations that help AASHTO illustrate key trends and policy issues.

In 2019, we created a comprehensive matrix of potential federal revenue sources for funding transportation. The report included descriptions of the mechanisms, estimated yields, and an analysis of the policy optimality of potential mechanisms based on evaluation criteria developed for the National Surface Transportation Infrastructure Financing Commission. The analysis was shared widely with federal and state policymakers.

Other special projects included analyses of enacted or proposed legislation affecting highway funding policies and financing practices, from advising on potential legislative and regulatory changes concerning the Federal-aid Highway and TIFIA programs to helping AASHTO assess the impacts of COVID-19 on state transportation revenues.