More EVs, Less Gas Tax Revenue Create State Transportation Budget Issues

Transportation funds in many states are running low, and the next few years will be critical to their future sustainability. Policymakers in some statehouses will have to act quickly because their funds face imminent deficits. Other states show longer-term funding gaps that will only grow if they are not addressed.

States scramble to replace gas tax cash

Pennsylvania drivers enjoy an unofficial subsidy for buying an electric vehicle: When they skip the gas station, they avoid the country’s second-highest gasoline tax.