An automotive trade association has proposed that federal authorities replace the gasoline tax with a new fee based on vehicle weight, according to a report from Fox Business. The proposal was put forward by the Alliance for Automotive Innovation, whose members include several major car manufacturers.

The suggested fee would function similarly to a registration charge applied to all vehicles. This initiative emerges as the existing federal surface transportation law is scheduled to expire on September 30, which may lead to discussions on policy adjustments. The trade group’s leader argued that the current system places a disproportionate financial burden on certain drivers and stated that the new policy would ensure every vehicle contributes to maintaining transportation infrastructure.

The federal Highway Trust Fund, which supports surface transportation programs, is forecast to become insolvent in 2028. At that point, it would confront a significant spending reduction. Revenue from the federal gasoline tax has fallen substantially in real terms, as the tax rate has not changed since 1993 and is not adjusted for inflation.

Since 2008, more than $275 billion has been transferred from the general fund to cover road repairs because spending has repeatedly exceeded revenue. The decline in gas tax income has been further influenced by the adoption of electric vehicles and more efficient hybrids, which require fewer refueling events. A separate legislative proposal from last year, which was not enacted, sought to impose annual fees on electric and hybrid vehicles.