The American automotive industry organization calls for abolishing the gasoline tax and replacing it with a weight-based fee for all vehicles.

The Alliance for Automotive Innovation, representing General Motors, Toyota, Volkswagen, Hyundai, and other major automakers, on Wednesday urged the U.S. government to eliminate the 18.4 cents per gallon gasoline tax and replace it with a vehicle fee to help fund road repairs.

John Bozzella, head of the auto innovation alliance, said in a proposal that the U.S. government should address the increasingly severe funding gap in the Highway Trust Fund by charging a single fee based on a vehicle’s weight.

Since 1993, the U.S. Congress has never raised the federal gasoline tax. As more Americans use electric vehicles and more fuel-efficient cars, gas tax revenues have failed to keep up with the demand for road maintenance. Because this tax is not tied to inflation, its real value has shrunk by more than 60%.

Bozzella said the fee would be collected like vehicle registration fees. “This policy will ensure that every vehicle on the road contributes to maintaining America’s transportation network,” Bozzella said. “Those who drive older vehicles with low fuel efficiency, or who drive long distances, carry the economic burden. This is unfair.”

Since 2008, more than $275 billion (including $118 billion in the 2021 infrastructure law) has been shifted from the general fund to road maintenance fees.

Many Republicans want to charge electric vehicles a fee to fund road repairs.

Last year, Republicans in the U.S. House proposed a $250-per-year fee on electric vehicles and a $100-per-year fee on hybrid electric vehicles, but the proposal ultimately was not included in a sweeping tax and spending bill. The current five-year surface transportation bill expires on September 30.

Some U.S. states charge fees for electric vehicles to pay for road maintenance costs. In February 2025, some Republican senators proposed a $1,000 tax on electric vehicles to fund road repairs.

Road repair funding funded by the U.S. government mainly comes from diesel and gasoline taxes, while electric vehicles do not have to pay those taxes.

Last year, the electric vehicle advocacy group “Electrification Alliance” argued that a $250 fee on electric vehicles is unfair, because ordinary gasoline-powered cars pay only $88 in federal gas tax per year.

Massive information, precise analysis—everything in the Sina Finance app

Responsible editor: Yu Jian SF069