The leader of an industry group that represents virtually all major automakers urged federal policymakers on Wednesday to abandon the long-standing 18.4-cent per gallon federal gasoline tax and replace it with a single vehicle fee calculated by weight to finance road repairs.
John Bozzella, head of the Alliance for Automotive Innovation, which includes manufacturers such as General Motors, Toyota, Volkswagen and Hyundai among its members, said the federal government should confront the widening funding gap in the Highway Trust Fund by imposing a standardized fee on each vehicle.
Bozzella proposed that the fee be collected in the same manner as vehicle registration. He argued the change would ensure "every vehicle on the road contributes something to maintaining America’s transportation network." He added that "Those driving older, less fuel-efficient vehicles or who travel long distances bear the financial burden. That’s not fair."
Policy advocates and lawmakers have increasingly highlighted that Congress has not raised the federal gas tax since 1993. With greater take-up of electric vehicles and improvements in fuel efficiency, gasoline tax receipts have not kept pace with the financing needs for highways and bridges. Because the federal gas tax is not indexed to inflation, it has lost more than 60% of its purchasing power in real terms.
To cover shortfalls, lawmakers have repeatedly transferred funds from the general fund to support road repairs. Since 2008, more than $275 billion has been shifted for that purpose, including $118 billion provided by the 2021 infrastructure law.
Most federally funded highway projects are financed through diesel and gasoline taxes, revenue streams that EVs do not contribute to. That gap has prompted discussion across the political spectrum about alternative funding mechanisms. Many Republican lawmakers have supported imposing specific fees on electric vehicles to help address road repair financing.
Last year, House Republicans proposed an annual $250 fee for electric vehicles and $100 for hybrid electric vehicles, though those proposals were not included in a large tax and spending package. Additionally, the current five-year surface transportation law is set to expire on September 30, creating a deadline for Congress to act on long-term funding solutions. Some states already levy fees on EVs to offset road repair costs.
In another example of legislative debate over EV charges, some Republican senators in February 2025 proposed a $1,000 tax on electric vehicles intended to raise funds for road maintenance.
Those arguing against flat EV fees have pointed to differences in annual federal gasoline tax burdens. The Electrification Coalition, described as an EV advocacy group, said a $250 annual fee for electric vehicles would be inequitable, noting that the average gasoline-powered vehicle pays about $88 per year in federal gas taxes.
Bozzella’s proposal would shift the funding model away from fuel consumption and toward a per-vehicle assessment determined by weight, collected like a registration fee, with the stated aim of ensuring a consistent contribution from all vehicles that use the nation’s roads.