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Mileage Tax Proposal Sparks Controversy in Congress

  //travel-leisure.news-articles.net/content/2026/ .. tax-proposal-sparks-controversy-in-congress.html
  Published in Travel and Leisure on Wednesday, February 4th 2026 at 2:06 GMT by KTXL
      Locales: Illinois, Washington, UNITED STATES

Washington D.C. - February 4th, 2026 - A proposal gaining traction in Congress to fundamentally alter how transportation infrastructure is funded is facing mounting criticism. Representative Pramila Jayapal (D-WA) recently unveiled a plan to replace the federal gas tax with a per-mile fee, a move intended to address the dwindling revenue stream caused by the increasing adoption of electric vehicles (EVs). However, the specifics of the proposal are drawing fire from policy experts, advocacy groups, and legislators alike, who argue it could disproportionately burden low-income individuals and those in rural areas.

For decades, the gas tax has been the primary source of funding for maintaining and improving America's roads, bridges, and public transit systems. But with the accelerating shift towards EVs - sales of which now account for over 40% of new vehicle purchases nationwide, according to the latest Department of Transportation figures - the gas tax is becoming increasingly unsustainable. EVs, while environmentally beneficial, do not consume gasoline, and therefore do not contribute to the gas tax revenue. This creates a fiscal gap that needs to be addressed.

Jayapal's proposal seeks to fill that gap by implementing a per-mile fee charged to all vehicle owners, regardless of fuel type. The initial rates, however, are at the heart of the controversy. Critics, like Marc Scribner of the Reason Foundation, argue that the proposed rates are significantly too high and fail to account for the vast differences in individual driving patterns.

"The core issue isn't whether we need to find a new funding mechanism for transportation, but how we do it," Scribner explained in an interview. "The current proposal sets rates that are insensitive to driving habits. Someone commuting 20 miles to a job in a rural area, or a delivery driver covering hundreds of miles a day, could face a drastically higher tax burden compared to someone who only uses their vehicle for occasional errands."

The concerns aren't merely theoretical. Preliminary analyses by independent think tanks suggest that drivers in sparsely populated states with limited public transportation options could see their transportation costs increase by hundreds, even thousands, of dollars annually under the proposed system. This raises questions about equity and accessibility, potentially exacerbating existing economic disparities.

Beyond the financial implications, the proposal also raises significant data privacy concerns. While the bill includes provisions for safeguarding personal information, critics remain skeptical about the feasibility of preventing government overreach. The system would necessitate tracking vehicle miles traveled, potentially through GPS technology or odometer readings submitted digitally.

"The idea of the government tracking our movements, even with assurances of privacy, is unsettling for many Americans," stated Amelia Chen, Executive Director of the American Civil Liberties Union's Transportation Privacy Project. "We need robust safeguards, independent oversight, and clear limitations on how this data is collected, stored, and used. Transparency is paramount."

The technical challenges of implementing such a system are also substantial. Accurately tracking mileage across a diverse range of vehicles, preventing fraud, and integrating the system with existing state and federal databases are all complex undertakings. Furthermore, the potential for increased administrative costs could offset any revenue gains.

Several alternative solutions are being floated in Congress. Some lawmakers are advocating for a "road user charge" that varies based on factors like vehicle weight and road type, while others propose a flat annual fee or a combination of different mechanisms. There's also renewed discussion about expanding existing sources of funding, such as general tax revenue, to supplement transportation infrastructure.

The debate over the mileage tax underscores the urgent need for a comprehensive and equitable transportation funding solution. While acknowledging the financial pressures created by the rise of EVs, policymakers must carefully consider the potential consequences of any new system, ensuring that it does not disproportionately burden vulnerable populations or infringe on individual privacy.