End of the Road for the Gas Tax? A Texas Pilot Shows the Way

By Patrick Griffin

DALLAS & FORT WORTH, TX – January 30, 2026 – A groundbreaking transportation pilot in North Texas has successfully concluded, offering the most compelling evidence to date that the smartphone in your pocket could soon replace the century-old gas tax as the primary method for funding America's roads.

In a partnership between Carma Technology Corporation and the North Central Texas Council of Governments (NCTCOG), the nation’s largest-ever road usage charge (RUC) pilot program tracked more than 41,000 volunteer drivers over 64 million miles. The results, independently evaluated by the Texas A&M Transportation Institute (TTI), demonstrate that a software-based approach, using technology people already own, can operate at a scale previously thought to require expensive, proprietary in-vehicle hardware.

This development arrives at a critical juncture for U.S. infrastructure. For decades, federal and state governments have relied on per-gallon taxes on gasoline and diesel to fund road construction and maintenance. But that model is crumbling under the weight of modern automotive technology. The rise of fuel-efficient hybrids and all-electric vehicles (EVs) means drivers are buying less fuel, or none at all, starving transportation budgets of essential revenue. This Texas pilot suggests a viable, scalable, and potentially more equitable path forward.

A New Blueprint for Road Funding

The sheer scale of the North Texas pilot sets it apart from all previous efforts in the United States, which typically involved only a few hundred or thousand participants. By enrolling over 41,000 vehicles, the program simulated conditions that closely resemble a real-world, statewide deployment.

“This project shows that road usage charging can operate at real-world scale without one-size-fits-all data collection,” said Lawrence Mulligan, CEO of Carma Technology, in a statement. “By using smartphones people already have, agencies can deploy RUC systems that are accurate, adaptable, and ready for statewide adoption.”

The Carma platform is cloud-based and hardware-free. It uses a smartphone app to capture mileage data, eliminating the need for drivers to install a dedicated device, such as an OBD-II port dongle. This approach significantly lowers the barrier to entry and reduces administrative costs, a key finding confirmed by the TTI evaluation, which noted that per-user costs decline sharply as enrollment grows.

“The scale of this pilot allowed us to evaluate road usage charging in conditions that closely resemble real deployment,” noted Nick Wood, a research lead at TTI. “That level of participation is critical for understanding system performance and long-term program viability.”

The software-based system also proved highly flexible. Program administrators were able to dynamically adjust rules and pricing structures, demonstrating potential applications beyond simple mileage-based fees. These could include managing traffic in express lanes, integrating with existing tolling systems, or creating geographically specific policies to manage congestion in urban cores.

The Inevitable Decline of the Gas Tax

The push for RUC systems is not an academic exercise; it's a direct response to a looming fiscal crisis. As of 2022, battery EVs accounted for 5.6% of new car sales, and some projections estimate they could exceed 50% by 2030. Every EV on the road contributes nothing to the federal Highway Trust Fund, which is financed primarily by the gas tax. This shift is projected to create a revenue shortfall of over $20 billion annually by the end of the decade.

Furthermore, critics have long argued the gas tax is becoming an increasingly inequitable model. It often places a heavier burden on lower-income households, who are more likely to drive older, less fuel-efficient vehicles. A RUC system, by contrast, operates on a simple principle: you pay for what you use. Whether you drive a gas-guzzling truck or a silent EV, the fee is based on the miles you travel.

Several states are already moving beyond the pilot phase. Oregon’s OReGO program has been active since 2015, while Utah and Virginia have also launched voluntary RUC programs. Hawaii is set to make a per-mile charge mandatory for EVs starting in 2028. The federal government is also encouraging this transition, with the Infrastructure Investment and Jobs Act (IIJA) establishing a national RUC pilot program to explore the concept further.

Balancing Innovation with Privacy

While the technology shows promise, the concept of using a smartphone to track driving habits inevitably raises privacy concerns. The idea of a government agency monitoring a citizen's mileage—and potentially their location—is a significant hurdle for public acceptance. Privacy advocates have voiced concerns about what data is collected, how it is stored, who has access to it, and the potential for surveillance.

Proponents of smartphone-based systems argue that they can be designed with privacy at the forefront. Unlike some hardware solutions that continuously track a vehicle, app-based systems can be built to collect only the necessary mileage data without constant location monitoring. Furthermore, users already entrust smartphone apps with vast amounts of personal and location data for navigation, social media, and other services. The key, according to experts, lies in transparency and user control.

Previous pilots have shown that when participants understand how their data is being used and are given choices, satisfaction rates are high. In a California pilot, for example, more than 86% of participants reported that the technology-based reporting solutions were easy to use. The success of any large-scale RUC program will depend heavily on building public trust through clear policies and secure data management.

The Road Ahead: From Pilot to Policy

The success of the Texas pilot is a major milestone, but the road to widespread adoption is long and filled with political and logistical challenges. Transitioning an entire state, let alone the nation, from the gas tax to a RUC system requires new legislation, extensive public education campaigns to dispel misconceptions, and robust technological infrastructure.

One of the most complex challenges is interoperability. In a country where millions of drivers cross state lines daily, any RUC system must be able to function seamlessly across different jurisdictions with varying rules and rates. Organizations like RUC America, a consortium of state transportation departments, are actively working on creating standards and frameworks to enable a unified, multi-state system.

The flexibility of cloud-based platforms like the one tested in Texas may be a crucial piece of this puzzle. The ability to adapt to different state policies without needing new hardware could simplify the path toward a cohesive national network. As more states grapple with dwindling transportation funds, the lessons learned from these 41,000 Texas drivers may very well pave the way for the future of American infrastructure funding.