Get The Facts
California's Looming Transportation Funding Crisis
Californians need safe and efficient ways to move through their communities. Adequate funding is critical to improving the multimodal transportation system – the roads, highways, bridges, transit, rail, bike and pedestrian systems that keep our people and economy moving.
The efficient movement of goods and services is critical to support the world’s fourth-largest economy and continue creating thousands of good-paying jobs statewide.
But the state’s primary source of transportation funding, the gas tax, is rapidly eroding as more drivers switch to zero-emission and fuel-efficient vehicles. Without action, California will lose $31 billion over the next 10 years, putting safety, jobs and economic growth at risk.
Transportation Funding Facts By The Numbers
Due to increased adoption of fuel-efficient and zero-emission vehicles, fewer drivers pay their fair share, leaving essential repairs and safety upgrades unfunded. Delayed maintenance increases long-term costs, worsens safety risks and slows the economy. Revenue losses impact the ability to provide more robust transit and rail options and bicycle and pedestrian infrastructure.
Jobs
Of highway and road repairs are funded by the gas tax.
In state and local transportation funding lost in the next decade.
At risk over the next 10 years.
Of major California roads are already in poor or mediocre condition.
EVs sold in the U.S. are registered in California.
The annual fee most EV drivers pay for roads, nowhere near their fair share.
Average fuel taxes that gas-powered drivers pay annually
What’s Causing the Crisis?
Zero-Emission Vehicles
While good for the climate and air quality, no taxes paid at the pump.
Higher Fuel Efficiency
Cars use less gas but still use the same roads.
Fewer Miles Driven
State policies to reduce driving also reduce revenue.
What’s At Risk?
California’s transportation system is complex and essential to our daily lives and economy. Without fair and affordable transportation funding, state and local projects will be delayed, roads will worsen, and critical safety upgrades for drivers, transit riders, cyclists and pedestrians will go unmet. Our state’s declining transportation revenue will lead to serious consequences for drivers, bicyclists and pedestrians, public transit riders and first responders – unless everyone pays their fair share
What Can We Do?
Fair Coalition Transportation California and its partners are researching practical, fair solutions, including:
Build on current system to include alternative fuel types, such as electricity and hydrogen.
Replace all fuel taxes with a system that charges vehicles based on the distance they drive.
Combines the existing fuel tax with a mileage-based charge for vehicles that use alternative fuels.
Stay Informed
Policymakers, experts and community leaders across California agree that we need a fair and sustainable solution to fund roads and multimodal transportation. Sign up to learn more.