- Rising EV ownership reduces gas tax income critical for road maintenance
- States implement road user charges and higher registration fees to compensate
- Oregon faces a $350M shortfall, highlighting urgent infrastructure funding needs
The pothole crisis in Portland, Oregon, underscores a national dilemma. Timothy Taylor’s $1,000 suspension repair mirrors broader infrastructure neglect as states grapple with evaporating gas tax revenue. Transportation departments nationwide report declining funds, with EV adoption accelerating this trend. Oregon projects a $350 million budget gap, threatening winter road services and hundreds of jobs.
California’s gas tax revenue could plummet 64% by 2035 as zero-emission vehicles dominate sales. Pennsylvania already saw a $250 million drop since 2019. Inflation compounds these challenges, increasing asphalt and construction costs by 22% since 2020. Lawmakers face dual pressures: maintaining roads while encouraging sustainable transportation.
Three industry insights reshape the funding debate. First, mileage-tracking technology enables fairer road usage charges without compromising privacy. Second, states like Michigan now route marijuana tax revenue into transportation budgets. Third, public-private partnerships fund 18% of new EV charging networks, creating alternative funding streams.
Oregon’s Road Usage Charge Program, launching fully in 2028, serves as a regional model. Drivers pay 1.8 cents per mile tracked via odometer readings or GPS. Early adopters save 30% versus gas tax payers, incentivizing participation. This approach could recover 92% of lost gas tax revenue by 2030, per state estimates.
Connecticut’s transportation fund now relies more on sales taxes than gas levies. Hawaii prepares to mandate mileage fees for EV owners starting July 2024. These innovations highlight a national shift toward usage-based infrastructure funding as the EV revolution accelerates.
