ASA Urges Senate Finance Committee Leadership to Include a User Fee on Electric and Hybrid Vehicles

ASA joined the Transportation Construction Coalition in a letter to the Senate Finance Committee Leadership, urging the inclusion of a user fee on electric and hybrid vehicles in the Senate's reconciliation measure, with revenues dedicated solely to the Highway Trust Fund (HTF). Although this solution would only partly enhance HTF revenues, it would ensure all users contribute to the system's upkeep.

Investing in the nation's infrastructure provides far-reaching economic benefits. Recent congressional support for roads, bridges, and public transportation systems has delivered much-needed projects to every congressional district, enhancing safety, mobility, and efficiency nationwide. These outcomes are possible due to the continuity and predictability of funding supported by a healthy HTF.

Currently, HTF revenues are generated primarily through user fees on the sale of gas and diesel fuels, supplemented by transfers from the General Fund. However, improvements in vehicle efficiency and the influx of hybrid and electric vehicles have created an unfair system where some users pay for maintenance while others pay less or nothing at all. At the same time, user fee revenue has not met system needs