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The Truckload Carriers Association has proposed to lawmakers the implementation of a Gallons-Based User Fee (GBUF).
The Truckload Carriers Association has released recent information regarding the severe financial crisis facing the United States Highway Trust Fund (HTF). According to the Association, the crisis stems from a “funding system that is outdated and strained by technological advancements and the growth of a fuel-efficient vehicle fleet.“
The Association warns that if urgent measures are not taken, the cumulative deficit between 2024 and 2033 could reach $181 billion, putting the maintenance and development of the nation’s road infrastructure at serious risk.
As a potential solution, the Association has proposed to lawmakers the implementation of a Gallons-Based User Fee (GBUF). This measure would serve as an update to the existing fuel tax, which has remained unchanged since 1993. The plan includes adjusting the fuel tax to account for inflation and introducing an annual registration fee for electric vehicles to ensure they also contribute their fair share to infrastructure funding.
Outdated taxes in the U.S. highway trust fund
The fuel tax remains the primary source of revenue for the HTF. However, in over three decades, it has not been adjusted for inflation—despite the continuous rise in construction and infrastructure costs. Since 1993, the tax rate has remained at 18.4 cents per gallon of gasoline and 24.4 cents per gallon of diesel.
The Truckload Carriers Association notes that the expansion of the fuel-efficient vehicle fleet and the surge in electric vehicles (EVs) have worsened the problem. Since hybrid and electric vehicles consume little or no fuel, they do not contribute to the gasoline tax, significantly reducing HTF revenues—even though they use the roads just as much.
If current policies are not updated, this trend could further erode the tax base necessary for maintaining the nation’s highways, the Association warns.
A sustainable policy proposal to rescue the highway trust fund
The federal fuel tax remains the most efficient and cost-effective way to finance highway improvements. Rather than replacing it, the GBUF proposes a long-overdue inflation adjustment: raising the tax to 39.9 cents per gallon for gasoline and 52.9 cents for diesel. This approach would increase transparency and directly link infrastructure usage with user contributions.
Additionally, under the GBUF, the Association proposes an annual registration fee of $250 for electric vehicles and $100 for hybrids. Based on estimated 2024 fuel consumption, the average cost per driver would be about $125 per vehicle per year. This measure aims to preserve equity as vehicle technologies continue to evolve.
With these reforms, the HTF’s adjusted annual revenues could generate an additional $220.2 billion over four years. Furthermore, the proposal could contribute over $651.7 billion toward closing the funding gap for the nation’s roads and bridges.
Transitioning to a transparent, fair, and modern system is essential to ensure safe and efficient transportation in the United States for years to come. The Truckload Carriers Association’s proposal seeks to be a key part of that transformation.
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