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Bill

SD 546

An Act to explore alternative funding sources to ensure safe and reliable transportation

194th Legislature (2025-2026) Introduced by Jason Lewis

Massachusetts study bill examines alternative transportation funding sources to offset declining gas tax revenue from fuel efficiency and electric vehicle adoption.

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Bill Summary · SD 546

Legislative bill overview

SD 546 is a Massachusetts bill that directs the state to study and explore alternative funding mechanisms for transportation infrastructure and operations beyond traditional gas taxes and registration fees. The bill establishes a framework for examining sustainable revenue sources to maintain safe and reliable transportation systems as fuel efficiency improvements reduce gas tax revenues.

Why this is important

As vehicles become more fuel-efficient and electric vehicles increase market share, gas tax revenue—the traditional funding source for transportation—is declining. This bill addresses a real fiscal challenge facing states nationwide: how to fund road maintenance, public transit, and safety improvements when existing revenue mechanisms erode. Finding alternatives affects every driver and transit user's access to safe infrastructure.

Potential points of contention

  • Mileage-based fees: Alternative funding often includes vehicle-miles-traveled (VMT) taxes, which raise privacy concerns about tracking driving patterns and could disproportionately burden rural drivers who travel longer distances
  • Regressive impacts: New funding mechanisms may shift costs to lower-income residents who cannot afford EVs or have limited transportation alternatives, unlike wealthy drivers who can more easily switch to tax-advantaged vehicles
  • Implementation complexity: Alternative funding sources (congestion pricing, road user fees, value-capture mechanisms) are administratively complex and require coordination between state and local governments, increasing costs before generating revenue

Compiled from official sources — confirm details with the bill’s official record.

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