America’s vast network of more than 4 million miles of public roadways connects cities, goods and people. Maintaining this essential infrastructure requires a patchwork of federal, state and local oversight — and an equally complex funding system. A large share of that funding comes from gas taxes, but as consumer behavior shifts, this model is becoming increasingly unsustainable. According to recent polling from the American Consumer Institute, consumers embrace shifting the tax toward those who cause the most damage.
The 2025 Infrastructure Report Card gave America’s roads a D plus, noting that deteriorating road conditions increased consumer costs by $725 per motorist in 2023. Three-fourths of highway spending comes from state and local governments, while the rest is covered federally. Gas taxes — collected at the federal and state levels — play a significant role. At the state and local level, fuel taxes cover about 26 percent of expenditures, while they make up more than 80 percent of the federal highway fund.
This system is showing its age. Because gas taxes are flat fees per gallon, their value erodes with inflation. Worse, they don’t account for modern vehicle trends. As more drivers switch to fuel-efficient hybrid or electric vehicles, gas tax revenues decline, even as road use and maintenance needs grow.
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Tirzah Duren is the President of the American Consumer Institute, a nonprofit education and research organization. For more information about the Institute, follow us on X @ConsumerPal.