The BUILD America 250 Act Fast-Tracks Tolls on Existing Interstates

The federal gas tax has been stuck at 18.4 cents per gallon since 1993. For over three decades, drivers pulling up to the pump on a cross-country road trip have paid the exact same federal rate to fund the nation's interstate highways, even as construction costs soared and electric vehicles began bypassing the pump entirely. Now, the $580 billion BUILD America 250 Act, which advanced out of the House Transportation and Infrastructure Committee on a 62-2 vote in May 2026, is poised to fundamentally rewrite the rules of the road.[3]

The legislation, designed to reauthorize federal surface transportation programs from fiscal year 2027 through 2031, signals a definitive end to the set-it-and-forget-it era of highway funding. Instead of relying solely on dwindling fuel tax revenues to prop up the Highway Trust Fund, the bill introduces a multi-tiered approach that shifts the financial burden directly onto the users of specific corridors. For families planning summer road trips and daily commuters alike, this means the freeways of the future will increasingly look and operate like digital tollways.[4]

The most immediate mechanism for this shift is the drastic streamlining of the Interstate System Reconstruction and Rehabilitation Pilot Program (ISRRPP). Historically, federal law strictly guarded against adding tolls to existing, federally funded interstate lanes. Bureaucratic red tape meant that while states could apply to toll existing corridors to fund reconstruction, almost none successfully navigated the approval process.

The BUILD America 250 Act cuts through this backlog, allowing states to fast-track applications to implement tolling or managed lanes on existing interstates, provided the revenue is reinvested directly into that specific stretch of pavement's modernization and structural integrity.[1]

This streamlined pathway is paired with a massive expansion of private capital. The act lifts the cap on Private Activity Bonds (PABs) for surface transportation projects, unlocking billions in private equity and institutional capital.

By shifting the risk of design, construction, and long-term maintenance to private concessionaires through Public-Private Partnerships (P3s), states can deliver complex highway expansions years ahead of schedule. For the driver navigating a newly expanded interstate, this means more Availability Payment and Toll Concession models, where private companies operate the road, maintain the asphalt, and collect the tolls.[6]

However, the legislation also removes some existing tolling flexibilities that cities had hoped to use. The BUILD America 250 Act eliminates the Congestion Relief Program introduced in the 2021 Infrastructure Investment and Jobs Act (IIJA). That program provided authority and financial incentives for up to ten urbanized areas to introduce road pricing specifically to manage heavy traffic demand. By cutting this program, the new bill pivots the federal focus away from using tolls primarily as a congestion-management tool and toward using them strictly as a revenue-generation mechanism for structural rehabilitation.[1]

Beyond traditional tolling, the bill takes direct aim at the electric vehicle transition. To address the shortfall in the Highway Trust Fund, the legislation establishes the first new stream of federal transportation revenue in over thirty years: an annual federal registration fee of $130 for electric vehicles and $35 for plug-in hybrids, which will increase biennially.

While the Committee for a Responsible Federal Budget estimates these fees will only cover about $30 billion of the bill's cost over a decade, they represent a structural shift toward ensuring all drivers pay for the roads they use, regardless of whether they plug in or fuel up.[1][4][5]

Looking further down the road, the act lays the groundwork for a national Vehicle Miles Traveled (VMT) system. The legislation mandates that within the next 24 months, the U.S. Department of Transportation must establish unified technical, data-privacy, and interoperability standards for Road User Charging frameworks. It also introduces strict timelines for cross-state transaction clearinghouses, ensuring that a driver with an E-ZPass, SunPass, FasTrak, or TxTag can navigate any user-fee facility nationwide with a single, unified account, eliminating the need for a windshield cluttered with different transponders.

Not everyone is celebrating the bill's formula. Urban transportation advocates point out that the BUILD America 250 Act cuts local discretionary grant access by $10 billion compared to the IIJA, eliminating programs like RAISE and Reconnecting Communities. Instead, the vast majority of the $474.4 billion in guaranteed funding will flow directly to state departments of transportation through formula programs, which are historically used to support highway expansion rather than local transit, protected bike lanes, or active transportation projects.[2][4]

The uncertainty now lies in the Senate and the appropriations process. While $474.4 billion is guaranteed from the Highway Trust Fund, the remaining $106 billion is subject to future annual appropriations from the General Fund. As the September 2026 expiration of the IIJA approaches, the BUILD America 250 Act sets a clear marker: the future of the American road trip will be highly connected, heavily privatized, and paid for by the mile.[2][4][5]