Through the millennia, responsibility for financing and building roads and highways has been both a local and a national responsibility in the nations of the world. It is notable that this responsibility has changed along with political attitudes toward road building and has not rested easily with any party. Many roads initially were built to provide rulers with a means of conquest, control, and taxation; in periods of peace, the same rulers usually tried to pass the maintenance responsibilities on to local authorities, adjoining landowners, or the travelers who used the road. Local authorities and landowners usually fulfilled their responsibilities via the corvée, in which people were required to donate their labour to road work. Corvée was always unpopular and unproductive, but it was nevertheless more effective than attempts at direct taxation.
The last option, charging the traveler, gave rise to the toll road, a system that blossomed with the Industrial Revolution. Private turnpike trusts dominated British road building and maintenance throughout the 19th century, eventually covering 15 percent of the entire network. In the United States many toll roads were constructed in the first half of the 19th century under charters granted by the states.
Thus, through the 19th century most road building was administered and financed on a local basis. British road building remained entirely local despite clear evidence that local responsibility was not providing adequate roads. The national government edged into the picture only through increased pressure from the cyclists, climaxed by the establishment in 1909 of a national Road Board authorized to construct and maintain new roads and to make advances to highway authorities to build new or improve old roads.
Except for the National Pike, early highway building in the United States was also carried on by local government. Congress made a number of land grants for the opening of wagon roads but exercised no control over the expenditure of funds—with the result that, as in Britain, little road building was accomplished.
In 1891 New Jersey enacted a law providing for state aid to the counties and established procedures for raising money at the township and county levels for road building. In 1893 Massachusetts established the first state highway commission. By 1913 most of the states had adopted similar legislation, and by 1920 all states had their own road organization. However, there was little coordination among the states. National funding began in 1912 with the Post Office Appropriation Act, and the Federal Aid Road Act of 1916 established federal aid for highways as a national policy. The Bureau of Public Roads, established in the Department of Agriculture in 1893 to make “inquiries with regard to road management,” was given responsibility for the program, and an apportionment formula based on area, population, and mileage of post roads in each state was adopted. Funds were allocated for construction costs, with the states being required to bear all maintenance costs. The location and selection of roads to be improved was left to the states, an arrangement that had some shortcomings.
Since 1892 a national Good Roads movement had lobbied for a system of national roads joining the major population centres and contributing to the national economy. This point of view was recognized by the Federal Aid Highway Act of 1921, which required each state to designate a system of state highways not to exceed 7 percent of the total highway mileage in each state. Federal-aid funding was limited to this system, which was not to exceed three-sevenths of total highway mileage. Bureau of Public Roads approval of the system was required, and federal aid was limited to 50 percent of the estimated cost.