Road Use

Everyone using American roads has a responsibility for their construction and upkeep.

EV drivers don’t pay a gas tax and thus don’t contribute to the federal Highway Trust Fund.
- The Congressional Research Service cautions that the increasing adoption of EVs “could further weaken the sustainability” of the Highway Trust Fund.
- Average Americans – even those without vehicles – are burdened by EV charging infrastructure development, which is often funded by utility rate increases.
- Bottom line – efforts to subsidize EV adoption can be costly for taxpayers and consumers.
A review by the Iowa Department of Transportation warned that growing EV adoption could cost the state up to $11 million in lost gas tax revenue in 2025 and up to $45 million in 2030.
Further Reading
- “Intergovernmental Challenges in Surface Transportation Funding,” Pew Charitable Trusts, September 2014.
- “2018 Report on the Impact of Electric Vehicles to the Road Use Tax Fund,” Iowa Department on Transportation, 12/31/18.
- “The Revenue Failure of the Highway Trust Fund,” Alliance for Innovation and Infrastructure, February 2020.

Topics

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