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Iowa, Nebraska road projects see boost from gas tax increase

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November 28th, 2017 by Ric Hanson

LINCOLN, Neb. (AP) — Two years after Iowa and Nebraska raised their gas taxes, both states are seeing a flurry of new roadway projects at a time when national infrastructure efforts have stalled. Officials say the extra revenue has allowed them to move forward quickly with overdue bridge repairs and plans for major highway projects. Both states raised their gas taxes in 2015 with support from farm groups, truckers and even some conservative Republicans who champion tax cuts.

Iowa passed its 10-cent-per-gallon increase first, in February 2015. A recent analysis shows the tax has generated an extra $515 million for projects in all 99 counties. Nebraska approved a 6-cent increase in May 2015. The following year, state officials created a program that will funnel $400 million into road and bridge projects.