U.S. Senate is pushing to eliminate a century-old tax on heavy trucks

On June 2, 2026, a bipartisan group of U.S. senators introduced the Modern, Clean and Safe Trucks Act, a bill aimed at eliminating the 12% Federal Excise Tax (FET) imposed on new heavy-duty trucks and trailers, a tax that has been in place for 110 years.

The proposal was introduced by Senators Todd Young (Republican of Indiana) and Angela Alsobrooks (Democrat of Maryland), who argue that the tax has become an obstacle to fleet renewal and significantly increases the cost of purchasing new equipment.

According to the lawmakers, the FET can increase the cost of a new heavy-duty truck by between $15,000 and $30,000, while adding as much as $50,000 to the cost of advanced zero-emission or alternative-fuel technologies.

Federal Excise Tax (FET): Impact on Fleet Renewal

The federal tax was established by the U.S. Congress in 1917 to help finance the country’s participation in World War I. Today, the revenue generated by the tax is directed to the Highway Trust Fund, which finances road infrastructure projects.

However, supporters of the legislation believe the tax has become outdated and creates incentives that run counter to the industry’s safety and sustainability goals. Senator Todd Young stated that the tax harms small businesses and independent truckers, who represent a vital segment of the U.S. trucking industry, and encourages the continued use of “older and less efficient” trucks.

Currently, approximately 34% of the Class 8 trucks operating in the United States were manufactured before 2010 and therefore lack more than a decade of advances in safety and fuel efficiency. According to data included in the bill, the tax adds at least $20,000 to the cost of a new diesel truck and more than $7,000 to the price of a standard trailer. The proposal seeks to encourage the adoption of safer and more energy-efficient vehicles.

Environmental and Economic Benefits

Supporters of the proposal also highlight the environmental benefits associated with fleet modernization. Between 2007 and 2020, technological advances in truck manufacturing prevented the emission of 202 million tons of carbon dioxide and 27 million tons of nitrogen oxides, while also saving 20 billion gallons of diesel fuel. In addition, a Class 8 truck equipped with the latest diesel technology consumes approximately 2,200 fewer gallons of fuel per year compared to older models.

Efforts to repeal the FET are not new. The Modern, Clean and Safe Trucks Act has been introduced on four previous occasions—in 2019, 2022, 2023, and 2025. In addition, a companion bill has been introduced in the House of Representatives with bipartisan support.

The bill has been read twice in the Senate and referred to committee for review and discussion. If enacted, the legislation would require Congress to identify an alternative source of revenue to replace the funds currently provided by the tax to the Highway Trust Fund.