{"id":29480,"date":"2026-04-05T11:57:21","date_gmt":"2026-04-05T11:57:21","guid":{"rendered":"https:\/\/thefundingpoints.com\/?p=29480"},"modified":"2026-04-05T11:57:21","modified_gmt":"2026-04-05T11:57:21","slug":"automakers-trade-group-urges-feds-to-scrap-gas-tax-replace-it-with-vehicle-weight-fee","status":"publish","type":"post","link":"https:\/\/thefundingpoints.com\/?p=29480","title":{"rendered":"Automakers trade group urges feds to scrap gas tax, replace it with vehicle weight fee"},"content":{"rendered":"
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The leader of a trade group that represents most major automakers called on the federal government to eliminate its\u00a0gasoline tax<\/u> and replace it with a vehicle fee to finance road infrastructure needs.<\/p>\n

Alliance for Automotive Innovation CEO John Bozzella, whose group represents automakers such as General Motors, Toyota, Volkswagen, Hyundai and other leading car manufacturers, put forward a proposal that urged the federal government to address the growing shortfall in the Highway Trust Fund with a vehicle fee.<\/p>\n

The proposal would function like a\u00a0vehicle registration fee<\/u> that’s assessed on all vehicles based on their weight, and was first reported by Reuters. It comes as the federal government’s current surface transportation law is set to expire on September 30, which could prompt debate over policy changes.<\/p>\n

“This policy would guarantee every vehicle on the road contributes something to maintaining America’s transportation network,” Bozzella said. “Those driving older, less fuel-efficient vehicles or who travel long distances bear the financial burden. That’s not fair.”<\/p>\n

AMERICANS DITCH EVS FOR BIGGER VEHICLES AS AUTO TRENDS REVERSE<\/u><\/strong><\/p>\n

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The\u00a0Highway Trust Fund<\/u>, which finances the federal government’s surface transportation programs involving highways and mass transit, is projected to reach insolvency in 2028, at which time it would face a 46% spending cut, according to the nonpartisan Committee for a Responsible Federal Budget.<\/p>\n

Revenue from the 18.4-cents per gallon gasoline tax has declined 60% in real terms, as the federal gas tax hasn’t been increased since 1993 and wasn’t\u00a0indexed to inflation<\/u>.<\/p>\n

THE $10,000 CAR LOAN TAX DEDUCTION: HERE’S WHO QUALIFIES AND HOW TO CLAIM IT<\/u><\/strong><\/p>\n

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The shortfall has caused Congress and successive administrations to shift more than $275 billion from the federal government’s\u00a0general fund<\/u> to help pay for road repairs since 2008, as spending has consistently outstripped revenue.<\/p>\n

Gas tax revenue has also declined amid the emergence of\u00a0electric vehicles (EVs)<\/u> and more fuel-efficient hybrids that reduce the frequency of fill-ups by drivers.<\/p>\n

CAR DEALERS WARNED BY FTC ABOUT DECEPTIVE PRICING PRACTICES, HIDDEN FEES<\/u><\/strong><\/p>\n

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A proposal by House Republicans last year would have imposed a new $250 annual fee on EVs and $100 for hybrid EVs, though it wasn’t included in the\u00a0One Big Beautiful Bill Act<\/u>.<\/p>\n

Last year, an EV advocacy group known as the Electrification Coalition argued that the proposed $250 fee on EVs was unfair because an average gas-powered vehicle pays just $88 a year in federal gas taxes.<\/p>\n

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Reuters contributed to this report.<\/i><\/p>\n<\/div>\n

Read the full article here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

The leader of a trade group that represents most major automakers called on the federal government to eliminate its\u00a0gasoline tax and replace it with a vehicle fee to finance road infrastructure needs. Alliance for Automotive Innovation CEO John Bozzella, whose group represents automakers such as General Motors, Toyota, Volkswagen, Hyundai and other leading car manufacturers,<\/p>\n","protected":false},"author":1,"featured_media":29481,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[41],"tags":[],"class_list":{"0":"post-29480","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-news"},"yoast_head":"\nAutomakers trade group urges feds to scrap gas tax, replace it with vehicle weight fee - The Funding Points<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/thefundingpoints.com\/?p=29480\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Automakers trade group urges feds to scrap gas tax, replace it with vehicle weight fee - The Funding Points\" \/>\n<meta property=\"og:description\" content=\"The leader of a trade group that represents most major automakers called on the federal government to eliminate its\u00a0gasoline tax and replace it with a vehicle fee to finance road infrastructure needs. 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