California Democrats Backtrack on Mileage Tax Proposal Amid Backlash

Proposal aimed at recouping revenue lost from electric car mandate faces strong opposition from residents

Published on Feb. 10, 2026

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California Democrats have been forced to back off a proposal to implement a tax-by-the-mile scheme to replace revenue lost from the state's electric car mandate, after facing a strong backlash from Californians. The mandate, passed in 2023, is expected to lead to a $5 billion annual revenue shortfall by 2035 due to declining gas tax receipts. However, the mileage tax idea was met with angry calls and social media outrage, prompting even Governor Gavin Newsom to distance himself from the proposal.

Why it matters

The electric car mandate was intended to reduce emissions, but the resulting revenue loss has put California Democrats in a difficult position. Their attempt to recoup that lost funding through a mileage tax has now sparked a major political backlash, highlighting the challenges of balancing environmental policies with fiscal realities.

The details

California passed an electric car mandate in 2023 that is expected to lead to a $5 billion annual revenue shortfall by 2035 due to declining gas tax receipts. Democrats in the state sought to replace this lost revenue by proposing a tax-by-the-mile scheme. However, the idea was met with fierce opposition from Californians, who are already facing high costs of living. Republican lawmakers and even Governor Newsom were forced to distance themselves from the proposal amid the public outcry.

  • In 2023, California passed an electric car mandate that is expected to lead to a $5 billion annual revenue shortfall by 2035.
  • In early 2026, California Democrats proposed a tax-by-the-mile scheme to recoup the lost revenue from the electric car mandate.

The players

Gavin Newsom

The Democratic governor of California who was forced to address the controversy and distance himself from the mileage tax proposal.

Heath Flora

The Republican Assembly Leader in California who criticized the mileage tax proposal, stating that Californians are already facing high costs of living and high gas taxes.

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What they’re saying

“Californians are already getting crushed by the cost of food, housing, power, and gas. We already pay the highest gas taxes in the nation. Now Sacramento is talking about adding a new tax for every mile people drive.”

— Heath Flora, Republican Assembly Leader

“Studying a concept is not enacting it. Despite national support from prominent *conservatives* like the Cato Institute, there is no mileage tax proposal in California — and the Governor would not sign one.”

— Gavin Newsom, Governor of California (Twitter)

What’s next

The California legislature is likely to continue searching for alternative ways to replace the revenue lost from the electric car mandate, but the strong public backlash against the mileage tax proposal will make it difficult to implement any similar measures in the near future.

The takeaway

This episode highlights the challenges that policymakers face in balancing environmental policies with fiscal realities. The electric car mandate was intended to reduce emissions, but the resulting revenue loss has put California Democrats in a difficult position. Their attempt to recoup that lost funding through a mileage tax has now sparked a major political backlash, underscoring the need for more comprehensive and well-thought-out approaches to addressing these complex issues.