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The Road Ahead: Should EV’s Contribute to the Highway Trust Fund?

Climate & Sustainability Energy & Utilities Infrastructure Workforce

Published on March 25, 2025

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The Highway Trust Fund (HTF) is the primary source of federal funding for highway infrastructure projects, including constructing and maintaining U.S. roads, bridges, and public transit systems. The HTF receives most of its funding from federal taxes on motor fuel and faces two main challenges. First, fuel efficiency steadily increases as regulations steer the U.S. toward increasing energy independence. Second, as electric vehicles (EVs) gain market share, gas consumption in the U.S. is anticipated to decrease. EVs do not consume gasoline, and they are not subject to the federal excise taxes funding the HTF, limiting the federal aid available to states for infrastructure expenses. To address the HTF’s growing deficit and ensure its sustainability, policymakers are considering introducing a tax on EVs, requiring their contribution to the fund, especially as their use expands. 

With a Republican-controlled Congress, legislation to tax EVs and bolster HTF funding is more viable. Speaker Mike Johnson and other GOP leaders support Trump’s efforts to end the “EV mandate,” framing incentives for their purchase as government overreach. Going forward, the HTF cannot rely on gas taxes alone. Whether through EV fees, VMT taxation, or alternative funding methods, Congress faces a pivotal decision: how to maintain America’s highway infrastructure without crippling the transition to EVs, a key part of the U.S.’s climate goals. The outcome of this debate will shape the future of U.S. transportation and climate policy.

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