by The Alliance for Automotive Innovation, which represents the interests of major automakers, has called for the abolition of the federal fuel tax. Instead, the organization proposes introducing a one-time fee, the amount of which would depend on the weight of the vehicle.
Why Now?
The President and CEO of the Alliance, John Bozzella, explained this step as a response to the fuel price surge due to the war in Iran. He noted that this could accelerate consumers’ transition to more fuel-efficient cars, such as hybrids, whose share of sales in January already reached 19%. However, this creates a problem for the Highway Trust Fund, which finances the construction and repair of roads in the United States.
The Road Funding Problem
This fund exists thanks to a gasoline tax of 18.4 cents per gallon, which has not changed since 1993. Adjusted for inflation, the tax should be about 42 cents, but politicians are hesitant to raise it. Furthermore, electric vehicles do not pay this tax at all, and the overall fuel efficiency of cars has increased significantly, further reducing revenue.
Replacement Proposal
Many states have already faced a similar problem and introduced new fees, often targeting electric vehicle owners. Bozzella proposes a radical solution: replace the federal fuel tax with a single fee based on the vehicle’s weight. Although the exact amount is not specified, such a system could be disadvantageous for heavy vehicles such as pickups, SUVs, and some electric vehicles.
Political Context
This issue has become particularly relevant in connection with the expiration of the current surface transportation law on September 30. Congress is discussing a new five-year plan with a budget of $500-550 billion, which, according to reports, may include new fees for electric vehicle owners. Among the proposals were an annual fee of $250 or a one-time fee of $1,000, but the future of any legislation in this area remains uncertain due to the political situation.
The Alliance’s proposal points to a deeper systemic problem: the infrastructure funding model, dependent on gasoline consumption, is outdated. Switching to a weight-based fee could more fairly distribute the burden among all road users, regardless of engine type. However, it may cause dissatisfaction among owners of heavy but popular vehicles in the USA. The success of any reform will depend not only on economic calculations but also on the political will to find a compromise between the needs of infrastructure and the sentiments of voters.
