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

Wastewater pouring out from a pipe.

Alabama: Trump Terminates Settlements for Black Communities Harmed By Raw Sewage

Trump deemed the landmark civil rights agreement “illegal DEI and environmental justice policy.”

April 13, 2025 - Inside Climate News

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.

5 hours ago - Diana Ionescu

Black and white photos of camp made up of small 'earthquake shacks' in Dolores Park in 1906 after the San Francisco earthquake.

The 120 Year Old Tiny Home Villages That Sheltered San Francisco’s Earthquake Refugees

More than a century ago, San Francisco mobilized to house thousands of residents displaced by the 1906 earthquake. Could their strategy offer a model for the present?

April 15, 2025 - Charles F. Bloszies

Looking out at trees on 4th Street in downtown Los Angeles, California.

LA’s Tree Emergency Goes Beyond Vandalism

After a vandal destroyed dozens of downtown LA trees, Mayor Karen Bass vowed to replace them. Days later, she slashed the city’s tree budget.

2 hours ago - Torched

White and blue Sacramento regional transit bus with one bike on front bike rack.

Sacramento Leads Nation With Bus-Mounted Bike Lane Enforcement Cameras

The city is the first to use its bus-mounted traffic enforcement system to cite drivers who park or drive in bike lanes.

2 hours ago - Streetsblog California

View of downtown Seattle with Space Needle and mountains in background

Seattle Voters Approve Social Housing Referendum

Voters approved a corporate tax to fund the city’s housing authority despite an opposition campaign funded by Amazon and Microsoft.

4 hours ago - Next City