Tax revenue from motor fuel, an important source of road funding in the United States, has been under pressure from several factors, including increased fuel economy, for decades. With electric vehicles (EVs) on the rise, many states are now focusing on collecting lost gas tax revenue from EV drivers through additional taxes and fees when they register or charge their vehicle. However, the current impact of EVs on highway funding is marginal and these measures can disproportionately burden EV drivers while discouraging EVs at a critical moment for transportation electrification. This 2024 update to our 2023 report seeks to broaden the road-funding discussion from a focus on EVs to an overall policy mix that will fund roads sustainably, equitably, and adequately.
This report was coordinated with and supported by the Alliance for Transportation Electrification. The findings and views in this publication reflect the data, analysis, and views of the primary author of the report, Atlas Public Policy.
