June 29, 1956: President Dwight Eisenhower signs the Federal-Aid Highway Act of 1956, popularly known as the National Interstate and Defense Highways Act, which established the Interstate Highway System. The bill appropriated $25 billion for the construction of more than 40,000 miles of limited-access highways over the next decade, making it America's largest public works project of its time. Eisenhower's support for the law was inspired by the German Autobahn system, and a cross-country road trip he made in the Army 37-years earlier. The construction of the highways had a dramatic impact on the economy with the greatest impact being on the railroads, which were already facing new competition from the nascent airline industry. The new highways encouraged the growth of the trucking industry at the expense of railroads. In addition, it further spurred the popularity of the car in American culture, again leading to the decline in railroads. Even intercity bus service gained in popularity. Within 15 years of the law's passage, most long-haul passenger railroads were bankrupt, leading the government to take control of the remaining passenger lines forming Amtrak in 1971. —
Matthew Wurtzel
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