Heavy Duty Trucking Logo
MenuMENU
SearchSEARCH

Is It Time to Rethink the Fuel Tax?

With a new presidential administration pushing for a sweeping new infrastructure program, HDT Editor in Chief Deborah Lockridge says it’s time to ask the question: Has the fuel tax outlived its usefulness as a highway-funding mechanism?

Deborah Lockridge
Deborah LockridgeEditor and Associate Publisher
Read Deborah's Posts
February 11, 2021
Is It Time to Rethink the Fuel Tax?

Even though many states have bitten the bullet and raised their fuel taxes, it appears to be a non-starter at the federal level.

Photo: Jim Park

3 min to read


With a new presidential administration and newly minted Secretary of Transportation Pete Buttigieg pushing for a sweeping new infrastructure program, it’s time to ask the question: Has the fuel tax outlived its usefulness as a highway-funding mechanism?

Ad Loading...

The federal fuel tax hasn’t been touched in nearly 30 years, despite a hike being supported by groups as diverse as the U.S. Chamber of Commerce, the AFL-CIO, and the American Trucking Associations. However, even though many states have bitten the bullet and raised their fuel taxes, it appears to be a non-starter at the federal level. Buttigieg said during his confirmation hearing that raising the fuel tax was one of many possibilities that should be considered. But a Buttigieg spokesman later walked that statement back, saying raising the fuel tax was not on the table.

Ad Loading...

But raising the fuel tax is problematic for a reason beyond the lack of political appetite for it. As Buttigieg said during that hearing, “As vehicles become more efficient and we pursue electrification, sooner or later there will be questions about whether the gas tax can be effective at all.”

That’s why a vehicle-mile tax, or VMT, has been discussed for years.

Back in 2009, a bipartisan, congressionally created commission recommended that the U.S. shift to a mileage-based usage fee by 2020. In its report, “Paying Our Way: A New Framework for Transportation Finance,” the National Surface Transportation Infrastructure Financing Commission recommended a 10-cent-per-gallon increase in the federal gas tax (15 cents for diesel) and indexing the tax to inflation to meet immediate needs to shore up the Highway Trust Fund. But long-term, it said, relying on the fuel tax would not be sustainable.

Charging vehicle drivers a mileage fee embodies the “user pays” principle and more accurately aligns the costs and benefits of the surface transportation system to those who are using it, noted the commission.

A VMT was part of a detailed infrastructure plan Buttigieg proposed when he was running for the presidential nomination. Sam Graves, R-Mo., the ranking member of the House Transportation Committee, and Rep. Earl Blumenauer, D-Ore. — who for years has been one of the most vocal supporters of raising the fuel tax — are among others who have advocated for a VMT.

Ad Loading...

Critics say there are technological and privacy issues that a VMT tax would have to face. That could result in the government looking at a truck-only version, since commercial trucks, already federally regulated, don’t have the same privacy rights as private citizens.

In 2019, the federal Congressional Budget Office estimated that in 2017, a tax of 1 cent per mile on all roads would have raised about $2.6 billion for the trust fund if imposed on all commercial trucks and about $1.6 billion if imposed only on those with one or more trailers.

Deborah Lockridge

Credit:

HDT

It pointed out that interstate trucking operations already have to track their miles per state for fuel-tax reporting purposes. The CBO also suggested the use of electronic logging devices or RFID tags like those used in many tolling systems as mileage-tracking methods.

However, it noted, such a tax would impose greater costs on the federal government and trucking companies than increasing existing taxes.

Other funding options mentioned during the presidential campaign include higher corporate or individual tax rates. Biden’s allies in the business community have been meeting to craft a set of proposals, including a carbon tax — a fee imposed on the burning of carbon-based fuels, such as coal, oil and gas. This could not only help pay for highways but also meet Biden administration goals of reducing carbon emissions.

Ad Loading...

But is a carbon tax sustainable as an infrastructure-funding strategy? If it is wildly successful at reducing the burning of carbon, the amount of money coming in will drop — and we’ll eventually end up in the same situation, asking ourselves how to pay for infrastructure. 

Subscribe to Our Newsletter

More Fuel Smarts

Solar panels on top of a red Class 8 truck sleeper cab
Equipmentby Deborah LockridgeMarch 15, 2026

Vanair Introduces Solar, Battery Power Ecosystem for Class 8 Trucks

The company’s expanded EPEQ ecosystem includes flexible solar panels, lithium batteries, hydraulic power systems, and a portable fast charger for electric trucks.

Read More →
HDT Talks Trucking thumbnail saying: NACFE's Messy Middle: Which Fuel Wins?
Fuel SmartsMarch 11, 2026

Run on Less “Messy Middle” Data Shows Multiple Paths for Truck Powertrains [Listen]

Listen as Mike Roeth of the North American Council for Freight Efficiency shares insights into battery-electric trucks, natural gas, biofuels, and clean diesel on this episode of HDT Talks Trucking.

Read More →
YouTube thumbnail with Mike Roeth of NACFE saying "NACFE's Messy Middle: Which Fuel Wins?"
Fuel Smartsby Deborah LockridgeMarch 11, 2026

Run on Less “Messy Middle” Data Shows Multiple Paths Forward for Truck Powertrains [Watch]

NACFE's Run on Less - Messy Middle project demonstrates the power of data in helping to guide the future of alternative fuels and powertrains for heavy-duty trucks.

Read More →
Ad Loading...
Mike Kucharski, vice president, JKC Trucking.
Fuel Smartsby Jack RobertsMarch 10, 2026

Trucking Executive Warns Fuel Spike from Middle East Conflict Hitting Fleets Fast

Mike Kucharski, vice president of refrigerated carrier JKC Trucking, says diesel price jumps tied to global instability are squeezing carriers already struggling with weak freight rates.

Read More →
A mechanic in a workshop leans over the open engine compartment of a large yellow vehicle, inspecting components while holding a tablet.
Sponsoredby Kristy CoffmanMarch 9, 2026

Smarter Maintenance Strategies to Keep Trucks Rolling

In today’s cost-conscious market, fleets are finding new ways to get more value from every truck on the road. See how smarter maintenance strategies can boost uptime, control costs and drive stronger long-term returns.

Read More →
Group of researchers and engineers standing next to an electric heavy-duty truck used in Purdue’s wireless charging project.
Fuel Smartsby News/Media ReleaseFebruary 3, 2026

Researchers Demonstrate Wireless Charging of Electric Heavy-Duty Truck at Highway Speeds

Purdue researchers demonstrated a high-power wireless charging system capable of delivering energy to electric heavy-duty trucks at highway speeds, advancing the concept of electrified roadways for freight transportation.

Read More →
Ad Loading...
Illustration showing diesel exhaust fluid pump sign and EPA headquarters
Equipmentby Deborah LockridgeFebruary 3, 2026

EPA Wants to Know: Are DEF De-Rates Really Needed for Diesel Emissions Compliance?

The Environmental Protection Agency is asking diesel engine makers to provide information about diesel exhaust fluid system failures as it considers changes to emissions regulations.

Read More →
SponsoredFebruary 1, 2026

6 Dashcam Tactics to Improve Safety & ROI

6 intelligent dashcam tactics to improve safety and boost ROI

Read More →
Fuel Smartsby Deborah LockridgeJanuary 29, 2026

California: Clean Truck Check Rules Still in Force for Out-of-State Trucks, Despite EPA Disapproval

The Environmental Protection Agency said California can’t enforce its Heavy-Duty Inspection and Maintenance Regulation, known as Clean Truck Check, on vehicles registered outside the state. But California said it will keep enforcing the rule.

Read More →
Ad Loading...
Illustration of Department of Justice building superimposed by truck exhaust stacks
Fuel SmartsJanuary 27, 2026

Justice Department Pulls Back on Criminal Prosecution of Diesel Emissions Deletes

The Trump administration has announced it will no longer criminally prosecute “diesel delete” cases of truck owners altering emissions systems in violation of EPA regulations. What does that mean for heavy-duty fleets?

Read More →