California is Facing a Looming Transportation Funding Crisis

Fewer drivers are paying their fair share to fix roads and keep people safe

Transportation is a Critical Need for All Californians.

We need fair and affordable transportation funding.

Users of state highways and local roads should contribute their fair share to essential repairs and improvements. But, as California leads the transition to more fuel-efficient and zero-emission vehicles, more drivers are using less gasoline. 

This means many drivers are not paying their fair share of user-based fuel taxes, resulting in a loss of $31 billion in transportation funding over the next 10 years. Local communities rely on these payments at the pump for 80% of the state’s road and highway repairs. 

If California fails to close the funding gap, local transportation projects will be delayed, potholes will multiply and safety improvements will remain unfunded. California is already among the worst-rated nationally for poor road and highway conditions. 

The Fair Transportation Funding Coalition (FTFC), comprised of business, labor, local government and community leaders, is working to address the looming transportation funding crisis in a way that is fair, sustainable and accountable over the long term. 

Get The Facts

California’s transportation funding crisis isn’t just a future concern — these numbers show the real and urgent impacts on our roads, economy and communities if we don’t act now.

Highway and road repairs funded by the gas tax
0 %
Loss in gas tax revenue over the next 10 years
$ 0 B
Approximate job loss over the next 10 years
0
of California's major roads in poor or mediocre condition
0 %
EVs sold in US registered in CA
0 %

Achieving Sustainable Funding

The Fair Transportation Funding Coalition is taking an evidence-based approach to ensure multimodal transportation improvements are funded in a way that is fair, affordable and accountable over the long term. An independent study commissioned by Transportation California researched all viable transportation funding options toward identifying a solution that works for all Californians. The study identifies three options for state policymakers to consider – each reflecting a tradeoff between simplicity, equity, and practicality:

Expanded Fuel Tax Model

Build on current system to include alternative fuel types, such as electricity and hydrogen.

Pure Road User Charge Model

Replace all fuel taxes with a system that charges vehicles based on the distance they drive.

Mixed Model

Combines the existing fuel tax with a mileage-based charge for vehicles that use alternative fuels.

Our Coalition

ACEC
AGC
CalCIMA
CALApa
MCWRA
Rebuild SoCal
SCCA
CAFJ
United Contractors
Bay Area Council
CSCL
NCCRC
Operating Engineers
TC
California Retailers Association
Cal Chamber
CAACC
CAPCC
California Hispanic Chambers of Commerce
CA Biofuels
CMTA
CSAC
LCC

What Others Are Saying

Policymakers and experts agree: California needs fair, sustainable transportation funding. Read quotes from leaders across California.

_Assemblymember Lori Wilson Official Headshot-2025-min
Tanisha Taylor, Executive Director, California Transportation Commission
Asha Agrawal, Education Director, Mineta Transportation Institute
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Margot-Yapp

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