Overview
- The Alliance for Automotive Innovation, which represents most major carmakers, proposed ending the 18.4-cent federal gas tax and charging a single vehicle fee tied to weight.
- The group argues the fee would make every driver contribute to the Highway Trust Fund without tracking miles, noting EVs pay little or nothing under the current per-gallon tax and hybrids are gaining share.
- Gas prices reached a $4.09 national average on April 3, which prompted President Trump and some lawmakers to discuss a temporary tax holiday, and two Democratic senators filed a March 13 bill to suspend the levy until October 1.
- The federal gas tax has been unchanged since 1993 and raises about $40 billion a year, while federal transportation spending runs near $60 billion, creating a persistent shortfall.
- Congress is drafting a five-year transportation bill before the current law ends September 30, and ideas on the table include EV fees of $250 per year or a one-time $1,000 charge, as city and infrastructure advocates warn against dropping the tax without a proven replacement.