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California Launches Study on Mileage Tax to Potentially Replace Gas Tax as Republicans Push Back

Under current law, California depends heavily on revenue from the gas tax to fund roads, highways, and infrastructure, but those revenues are projected to shrink as electric vehicle use grows and overall gasoline consumption drops. The mileage study would look at a “road charge” system where drivers pay based on how many miles they drive, rather than how much gas they buy. 

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Assemblymember Lori Wilson (D-Suisun City is the author of AB 1421. File photo.
Assemblymember Lori Wilson (D-Suisun City is the author of AB 1421. File photo.

By Tanu Henry, California Black Media

California lawmakers are moving forward with a study to explore a mileage-based tax as a potential replacement for the state’s traditional gas tax — a shift supporters say is driven by declining fuel tax revenues as more drivers switch to fuel-efficient and electric vehicles.

The research, tied to Assembly Bill (AB) 1421, would extend and support work by the state’s Road Usage Charge Technical Advisory Committee through 2035.

Under current law, California depends heavily on revenue from the gas tax to fund roads, highways, and infrastructure, but those revenues are projected to shrink as electric vehicle use grows and overall gasoline consumption drops. The mileage study would look at a “road charge” system where drivers pay based on how many miles they drive, rather than how much gas they buy.

The bill does not yet enact a new tax. Instead, it extends the study and advisory work until 2035 and would have the Legislature receive findings and recommendations, with a report due by Jan. 1, 2027.

Republicans in the California Legislature have been vocal in their opposition. Assembly Republican Leader Heath Flora criticized the proposal.

“We already pay the highest gas taxes in the nation. Now Sacramento is talking about adding a new tax for every mile people drive,” Flora said. “Piling on another tax right now shows just how out of touch politicians in Sacramento are with the reality working families face.”

The plan has drawn broader GOP criticism from leaders outside the Legislature as well. California Republican gubernatorial candidate Steve Hilton called a mileage fee “absolutely outrageous” and said, if elected, he would veto the tax, adding that tracking and charging drivers for every mile is unacceptable.

Supporters say the study is a pragmatic response to long-term funding challenges.

On the Assembly Floor on Jan. 29, Assemblymember Lori Wilson (D–Suisun City), the bill’s author, said that California’s transportation funding is “becoming less stable, less equitable, and less sustainable as more drivers switch to fuel-efficient and zero-emission vehicles.”

“Drivers using the same roads often pay different amounts for that use,” Wilson continued. “Low income and rural commuters who must drive farther and less efficient vehicles can pay more while others contribute less despite roadway impacts.”

Wilson and other supporters contend that a per-mile road charge could ensure that all drivers contribute fairly to the costs of maintaining roads, regardless of the type of vehicle they drive.

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Oakland Post: Week of April 1 – 7, 2026

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Oakland Post: Week of March 18 – 24, 2026

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Financial Wellness and Mental Health: Managing Money Stress in College 

While everyone’s financial situation is unique, several common sources of stress have the potential to strain your financial health. These include financial and economic uncertainty, existing debts, unexpected expenses, and mental or physical health changes. Financial stress may differ from situation to situation, but understanding the factors contributing to yours may help you begin to craft a plan for your unique circumstances. 

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Sponsored by JPMorganChase

As a college student, managing financial responsibilities can be stressful.

If you’ve found yourself staying up late thinking about your finances or just feeling anxious overall about your financial future, you’re not alone. In one survey, 78% of college students who reported financial stress had negative impacts on their mental health, and 59% considered dropping out. While finances can impact overall stress, taking steps to manage your finances can support your mental, emotional and physical well-being.

When it comes to money, the sources of stress may look different for each student, but identifying the underlying causes and setting goals accordingly may help you feel more confident about your financial future.

Consider these strategies to help improve your financial wellness and reduce stress.

Understand what causes financial stress

While everyone’s financial situation is unique, several common sources of stress have the potential to strain your financial health. These include financial and economic uncertainty, existing debts, unexpected expenses, and mental or physical health changes. Financial stress may differ from situation to situation, but understanding the factors contributing to yours may help you begin to craft a plan for your unique circumstances.

2. Determine your financial priorities

Start by reflecting on your financial priorities. For students this often includes paying for school or paying off student loans, studying abroad, saving for spring break, building an emergency fund, paying down credit card debt or buying a car. Name the milestones that are most important to you, and plan accordingly.

3. Create a plan and stick to it

While setting actionable goals starts you on the journey to better financial health, it’s essential to craft a plan to follow through. Identifying and committing to a savings plan may give you a greater sense of control over your finances, which may help reduce your stress. Creating and sticking to a budget allows you to better track where your money is going so you may spend less and save more.

4. Pay down debt

Many students have some form of debt and want to make progress toward reducing their debt obligations. One option is the debt avalanche method, which focuses on paying off your debt with the highest interest rate first, then moving on to the debt with the next-highest interest rate. Another is the debt snowball method, which builds momentum by paying off your smallest debt balance, and then working your way up to the largest amounts.

5. Build your financial resilience

Some financial stress may be inevitable, but building financial resilience may allow you to overcome obstacles more easily. The more you learn about managing your money, for instance, the more prepared you’ll feel if the unexpected happens. Growing your emergency savings also may increase resilience since you’ll be more financially prepared to cover unexpected expenses or pay your living expenses.

6. Seek help and support 

Many colleges have resources to help students experiencing financial stress, like financial literacy courses or funds that provide some assistance for students in need. Talk to your admissions counselor or advisor about your concerns, and they can direct you to sources of support. Your school’s counseling center can also be a great resource for mental health assistance if you’re struggling with financial stress.

The bottom line

Financial stress can affect college students’ health and wellbeing, but it doesn’t have to derail your dreams. Setting smart financial goals and developing simple plans to achieve them may help ease your stress. Revisit and adjust your plan as needed to ensure it continues to work for you, and seek additional support on campus as needed to help keep you on track.

 JPMorgan Chase Bank, N.A. Member FDIC

© 2026 JPMorgan Chase & Co.

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