Nebraska’s “Chain O’ Lakes” along resulted from borrow pits used during construction of this part of the highway. These lakes have been landscaped with native grasses and trees and offer the highway user water-oriented recreation and provide wildlife sanctuaries.
To provide the needed financing, the 1961 Act revised the existing schedule of highway-user excise taxes dedicated to the Highway Trust Fund. The motor-fuel tax was continued at 4 cents per gallon until October 1, 1972. For the same period, the tax per pound was increased on highway vehicle tires from 8 to 10 cents, on inner tubes from 9 to 10 cents, and on retread rubber from 3 to 5 cents. The use tax on heavy vehicles, those of over 26,000 pounds gross weight, was increased from $1.50 to $3.00 per 1,000 pounds per year. All of the 10-percent tax on the manufacturer’s sale price of new trucks, buses, and trailers was earmarked to the Trust Fund, instead of only half as had been provided by the 1956 Act.
By this 1961 Act, both the necessary authorizations to complete the Interstate System on the basis of the most recent estimate available and the revenues to pay for the job were provided.
Construction Progress
Following passage of the 1961 Act and the regular funding of the program which resulted, construction of the System moved forward steadily. “Miles open to traffic” grew in number on virtually a straight-line basis year by year. The States were able to move to construction on most sections of the System without major delay and total progress was limited only by the funding available.
There were problems relating to the location of some segments of the System, generally involving environmental considerations, but these were relatively few in number when considered against the total system concept. Progress in general was excellent.
In 1967, as a Federal budget requirement, the authorized Federal funding was withheld in part. Although the States had available balances of unobligated apportioned funds, they were not permitted to exceed a predetermined level of Federal funding. The result was the beginning of the controversy over “withholding” of funds authorized by the Congress and otherwise legally available.
With obligation ceilings controlling the total level of highway construction after 1967, there was a slackening of the rate at which new sections of the Interstate System were opened to traffic. However, even with these controls, there were in service at the end of 1974 over 36,000 miles of the 42,500-mile System and another 2,800 miles were under basic construction,
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