Automakers call for end to US gas tax in major funding shift

On Wednesday, April 1, 2026, a group representing General Motors, Toyota, and others called for the government to scrap the 18.4-cent federal gas tax. Instead, they want every driver to pay a new Registration Fee based on how much their vehicle weighs.

The Highway Funding Gap
The U.S. has not raised the gas tax since 1993. Because of inflation, that tax has lost 60% of its value. As more people drive electric vehicles (EVs), the Highway Trust Fund is running out of money. Since 2008, the government has moved over $275 billion from other funds just to fix potholes and bridges. This includes money from the 2021 Infrastructure Law.

A New Way to Pay
John Bozzella, head of the Alliance for Automotive Innovation, says the current system is not fair. Right now, people with older cars that use a lot of gas pay the most. People with EVs pay nothing in federal gas taxes. The new plan would charge a single fee to every vehicle. This would make sure everyone who uses the road helps fix it.

Political Battle Ahead
Not everyone agrees on the amount. Some leaders want a $250 yearly fee for EVs. Others have even suggested a tax as high as $1,000. However, Electric Vehicle Advocacy groups say these high fees are unfair. They point out that the average gas car only pays about $88 a year in federal gas taxes. With the current Surface Transportation Law set to expire in September, Congress must decide soon how to keep America moving.

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