A growing number of U.S. states have experimented with mileage-based user fees as an alternative to traditional gas taxes, shifting the burden of road funding from fuel consumption to actual vehicle use. These programs, which typically track miles driven through onboard devices or smartphone apps, aim to modernize transportation financing amid declining gas tax revenues and rising electric vehicle adoption. Early implementations have highlighted both technical challenges—such as privacy concerns and equitable distribution—and potential benefits, including more accurate funding tied to road wear. Critics and supporters alike are closely watching these pilot efforts to assess whether they could reshape how states finance infrastructure in the long term.
Mileage-based user fees: Lessons from state programs Reason Foundation