With the surge in electric vehicle (EV) adoption and a persistent rise in gasoline prices, the financial stability of the U.S. Highway Trust Fund, which is responsible for funding the nation’s road infrastructure, is under threat. A significant portion of its revenue comes from the federal gas tax, which has remained at 18.4% per gallon since 1993.
Over the past three decades, the trust fund’s financial resources have diminished, primarily due to inflation and the growing number of fuel-efficient and electric vehicles. Currently, EVs make up 2.5% of all light-duty vehicles in the U.S., and the internal combustion engine vehicle market share has decreased by 24 percentage points since 2016.
As gasoline prices in the U.S. average over $4 per gallon due to ongoing Middle East conflicts, more consumers are considering EV purchases, which means fewer contributions to the federal gas tax. John Bozzella, CEO of the Alliance for Automotive Innovation, highlighted the need to replace the gas tax with a new mechanism.
The auto industry trade group suggests replacing the gas tax with a weight-based fee for all vehicles. According to Bozzella, “This policy would guarantee every vehicle on the road contributes something to maintaining America’s transportation network.”
The organization, representing numerous automakers, indicates that a weight-based fee could adequately fund the Highway Trust Fund, unlike the current gas tax. The Committee for a Responsible Federal Budget reports that transportation spending has outpaced revenue for years, and anticipates the trust fund could become insolvent by 2028.
In response to the oil crisis, the Alliance for Automotive Innovation noted a rise in online EV searches by 20%. Bozzella emphasized, “We can drive with the devil we know… or get behind a new policy that requires every vehicle on the road to contribute to the upkeep of America’s roads and bridges.”
The Alliance’s recent analysis revealed that by March, 164 electric models were available in the U.S. Despite a dip in EV sales last year compared to 2024, they accounted for 9.6% of new light-duty vehicle sales in 2025. Hybrids also saw a significant presence, representing 19% of sales in January 2026.
Bozzella advocates for the simplicity of a weight-based fee, which would not require tracking miles driven, unlike other proposals. He also mentioned, “Beyond that, it’s an overdue policy change that insulates infrastructure spending – a $3.5 trillion national need over the next decade – from gas price shocks and inevitable geopolitical disruptions.”
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