Automakers Urge Scrapping Gas Tax for Vehicle Weight Fee

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The leader of a major automakers trade group is calling on the federal government to eliminate the gasoline tax and replace it with a new fee based on vehicle weight. The group argues the current fuel tax is becoming outdated as electric vehicles continue gaining market share.

Why it matters

The gas tax has been a key source of funding for transportation infrastructure projects, but declining gas consumption due to the rise of EVs is threatening that revenue stream. Automakers are pushing for a new tax model that would ensure all vehicles contribute to road maintenance costs.

The details

The Alliance for Automotive Innovation, which represents most major automakers, says the current federal gas tax of 18.4 cents per gallon is no longer an effective way to fund road repairs and improvements. As more drivers switch to electric vehicles that don't use gasoline, the group argues a weight-based fee would be a fairer system to generate the necessary revenue.

• The federal gas tax has remained unchanged since 1993.
• Electric vehicle sales in the U.S. reached a record high of 1.2 million units in 2025.

What they’re saying

What’s next

The Biden administration and Congress are expected to consider proposals to reform the federal gas tax in the coming year as part of broader infrastructure funding discussions.