States Looking to Fill Gas Tax Revenue Shortfall: States of Play

May 18, 2026, 6:31 PM UTC

States Grapple With Gas Tax Revenue Drop

State officials are trying to figure out how to make up for the broad per-mile decline in gas tax revenue brought on by improved vehicle efficiency and the proliferation of electric vehicles, Daniel Moore and Allison Prang report.

States continue to rely on gas taxes to build and maintain roads and bridges, while persistent inflation has significantly raised labor, materials, and other costs. At least 24 states reported a collective $86 billion shortfall in their projected transportation budgets over the next decade, according to a Pew report.

Many states have gradually raised ...

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