A leading auto industry group is urging the federal government to eliminate the federal gas tax and replace it with a fee based on vehicle weight.
The Alliance for Automotive Innovation, which represents nearly all major automakers including General Motors, Toyota, Volkswagen and Hyundai, made the call earlier this month. CEO John Bozzella proposed the change to address growing shortfalls in the Highway Trust Fund, which pays for road and bridge repairs nationwide.
The federal gas tax has stood at 18.4 cents per gallon since 1993 and has lost more than 60 percent of its purchasing power to inflation. At the same time, the rapid adoption of electric vehicles and highly fuel-efficient cars has sharply cut revenue because those drivers pay little or nothing at the pump. Congress has transferred more than $275 billion from the general fund to the Highway Trust Fund since 2008 to keep it solvent.
"This policy would guarantee every vehicle on the road contributes something to maintaining America's transportation network... Those driving older, less fuel-efficient vehicles or who travel long distances bear the financial burden. That's not fair." https://t.co/GEeiiv93jq
— Alliance for Automotive Innovation (@autosinnovate) April 6, 2026
Bozzella suggested replacing the gas tax with a single annual fee on every registered vehicle, scaled by weight and collected like a standard registration fee. He said the new system would be fairer because every vehicle would contribute based on its impact on roads.
“This policy would guarantee every vehicle on the road contributes something to maintaining America’s transportation network,” Bozzella said. “A single, weight-based vehicle fee can fully fund the Highway Trust Fund. That’s not something you can say about the gas tax.”
The proposal comes as the current five-year surface transportation law expires on September 30, setting the stage for Congress to consider major funding changes.
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The federal gas tax has stood at 18.4 cents per gallon since 1993
