As electric vehicles continue to gain market share across the United States, a growing fiscal problem has emerged: EVs do not pay gasoline taxes, which have long been the primary mechanism for funding road construction and maintenance. The federal gasoline tax stands at 18.4 cents per gallon and has not been raised since 1993, while state gas taxes vary widely. With more drivers switching to electric, the revenue base for highway infrastructure is eroding.
According to data from the U.S. Energy Information Administration and transportation policy researchers, the share of EVs on American roads has grown substantially in recent years, meaning a larger portion of drivers contribute nothing to the Highway Trust Fund through fuel taxes. The Congressional Budget Office and various state budget offices have flagged this as a long-term structural funding problem for infrastructure.
In response, many states have introduced or expanded annual EV registration fees designed to approximate what an average driver would pay in gas taxes. As of early 2026, more than 30 states have enacted some form of EV-specific fee. However, critics argue these flat fees are often poorly calibrated — some too high, some too low — and do not account for actual miles driven.
A more comprehensive solution gaining traction is the Vehicle Miles Traveled (VMT) fee, which charges drivers based on how far they drive rather than how much fuel they consume. Oregon has operated a voluntary VMT pilot program for years, and several other states have explored similar approaches. However, VMT programs face significant political and logistical hurdles, including privacy concerns related to mileage tracking.
The debate reflects a broader tension in U.S. transportation policy: how to encourage the adoption of cleaner vehicles while ensuring that all drivers contribute fairly to the roads they use. With federal infrastructure funding under ongoing pressure, finding a durable replacement for the gas tax has become an urgent policy priority heading into the latter half of the 2020s.
