Can State Lawmakers Make the Case for Road Charges?

More state legislatures are considering fees based on vehicle miles traveled as a replacement for declining gas tax revenues.

2 minute read

March 20, 2025, 7:00 AM PDT

By Diana Ionescu @aworkoffiction


Close-up on car dashboard with odometer and speedometer at night.

RuskaPixs / Adobe Stock

As gas tax revenues dwindle thanks to electric and other more fuel-efficient vehicles, states are looking to new sources of transportation funding. But as Jared Brey reports in Governing, a road user fee based on vehicle miles traveled (VMT) is still a hard sell in most places.

To date, Oregon offers a voluntary road user charge program, Utah lets EV drivers opt for a VMT charge instead of a flat fee, and Hawai’i launched an optional VMT fee this year. Over a dozen states have pilot programs funded by the 2015 federal FAST Act. “They’ve helped answer questions about how to track mileage accurately while protecting drivers’ privacy, and some states have collaborated on programs that could track mileage on interstate travel.”

This year, three states — Massachusetts, Illinois, and Washington — are considering legislation to pass some kind of VMT charges. Revenue from the charges could help fill the massive budget gaps faced by transit agencies such as the Massachusetts Bay Transportation Authority and Chicago-area transit systems. One Washington state senator approached it as an equity issue, noting that rural residents with less fuel-efficient vehicles tend to bear the brunt of the gas tax.

Not all states are moving away from the gas tax. A proposal in the Mississippi legislature would eliminate the state’s income tax — already one of the lowest in the country and one-third of the state’s budget — and raise the gas tax.

With the politics of road user fees often being unpredictable, it remains to be seen how the Trump administration will approach the issue when it comes to federal funding and policy.

Wednesday, March 19, 2025 in Governing

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Get top-rated, practical training

Close-up of "Apartment for rent" sign in red text on black background in front of blurred building

Trump Administration Could Effectively End Housing Voucher Program

Federal officials are eyeing major cuts to the Section 8 program that helps millions of low-income households pay rent.

April 21, 2025 - Housing Wire

Logo for Planetizen Federal Action Tracker with black and white image of U.S. Capitol with water ripple overlay.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

6 hours ago - Diana Ionescu

Ken Jennings stands in front of Snohomish County Community Transit bus.

Ken Jennings Launches Transit Web Series

The Jeopardy champ wants you to ride public transit.

April 20, 2025 - Streetsblog USA

Close-up of white panel at top of school bus with "100% electric" black text.

Driving Equity and Clean Air: California Invests in Greener School Transportation

California has awarded $500 million to fund 1,000 zero-emission school buses and chargers for educational agencies as part of its effort to reduce pollution, improve student health, and accelerate the transition to clean transportation.

3 hours ago - California Air Resources Board

Aerial view of Freeway Park cap park over I-5 interstate freeway in Seattle, Washington at night.

Congress Moves to End Reconnecting Communities and Related Grants

The House Transportation and Infrastructure Committee moved to rescind funding for the Neighborhood Equity and Access program, which funds highway removals, freeway caps, transit projects, pedestrian infrastructure, and more.

4 hours ago - Streetsblog USA

"No Thru Traffic - Open Streets Restaurants" sign in New York City during Covid-19 pandemic.

From Throughway to Public Space: Taking Back the American Street

How the Covid-19 pandemic taught us new ways to reclaim city streets from cars.

5 hours ago - Next City