Pennsylvania Transportation Funding Reform Plan

Fix the Roads. Eliminate Passenger Tolls. Lower Costs for Families.

Pennsylvania families are paying too much just to drive.

Between gas taxes and tolls, many people are spending hundreds of dollars every year just getting to work, taking their kids to school or activities, and handling everyday life. At the same time, too many roads and bridges still need repairs, and the system for paying for transportation is becoming less reliable as vehicles become more fuel-efficient and electric.

Pennsylvania needs a smarter, fairer transportation system.

What this plan will do

This reform plan will:

• eliminate tolls for passenger vehicles on Pennsylvania toll roads

• eliminate the gas tax within 5 years

• move the state sales tax to 8% in phases to replace most of that lost revenue

• keep groceries, clothing, most personal hygiene items, and prescription medicine tax-free

• require heavy commercial vehicles to continue paying tolls on Pennsylvania toll roads

• pause major expansion projects until current infrastructure is repaired

• audit current transportation spending and project backlog

• protect municipal road funding during the transition

• move transportation-related State Police funding into a separate public safety funding structure

1. Eliminate passenger tolls

Passenger vehicles should not be paying tolls just to travel across Pennsylvania.

Under this plan, tolls for passenger vehicles would be eliminated completely on Pennsylvania toll roads.

Heavy commercial vehicles would continue paying tolls because they cause far more wear and tear on roads and bridges than regular passenger vehicles.

Some toll roads that are rarely used should also be reviewed to determine whether they should remain in the toll system at all.

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2. Eliminate the gas tax within 5 years

The current gas tax system is outdated and unfair to working families.

It also becomes less sustainable every year as hybrid and electric vehicles become more common. If nothing changes, Pennsylvania will eventually face lower gas tax revenue and pressure to raise taxes, tolls, or fees somewhere else.

This plan phases out the gas tax on all motor fuels over 5 years:

• Year 1: 15% reduction

• Year 2: 15% reduction

• Year 3: 25% reduction

• Year 4: 25% reduction

• Year 5: 20% reduction

By the end of Year 5, the gas tax would be eliminated.

3. Replace most of the lost revenue with a phased sales tax increase

To keep transportation funded in a stable and predictable way, the state sales tax would rise to 8% in phases.

The increase would happen like this:

• Year 1: increase by 1.0%

• Year 2: increase by 0.5%

• Year 3: increase by 0.5%

That would take Pennsylvania from 6% to 8%.

Just as important, this plan does not expand the tax to current non-taxed categories. Groceries, clothing, most personal hygiene products, and prescription medications would remain exempt. Pennsylvania already protects many basic necessities that some other states still tax.

A 2-point sales tax increase should cover the majority of the revenue transition, while heavy commercial toll revenue helps cover the rest, including debt paydown and infrastructure costs. Pennsylvania collected about $14.7 billion in sales tax in FY 2024-25 at a 6% rate, implying that each additional percentage point is worth roughly $2.45 billion annually before behavioral changes.

4. Keep heavy commercial vehicles paying tolls

Heavy commercial vehicles would continue paying tolls on all Pennsylvania toll roads.

This applies to heavy commercial vehicles of 26,000 pounds or more.

Truck tolls should be based on:

• weight

• axle count

• distance traveled

That is the fairest system because it ties cost to actual road use and actual roadway wear.

This plan is not anti-business. It is pro-fairness. Passenger vehicles should not be carrying the same burden as vehicles that place the greatest strain on infrastructure.

5. Fix what we already have before building more

Pennsylvania needs to stop acting like expansion always comes first.

Under this reform, major expansion projects would be paused statewide. A full audit of current projects and infrastructure conditions would be completed, and major expansion would not resume until the repair backlog has been reduced by 50%.

That backlog reduction would be measured with:

• severity and safety first

• dollar value second

Safety-related expansions that are truly necessary could still continue.

This is a repair-first policy. It focuses on roads, bridges, and infrastructure people already rely on every day.

6. Audit transportation spending and current projects

A full review of current transportation spending is necessary.

That audit should identify:

• current repair backlog

• project costs

• waste or duplication

• lightly used toll facilities

• funding priorities

• safety risks

The audit should be handled by:

• an independent state auditor

• an outside engineering firm

• an independent civilian review board

Quarterly public reports should be issued, and a public dashboard should show project costs, timelines, and repair progress.

7. Protect local road funding during the transition

Municipal transportation funding should continue at current levels until the audit is complete.

Once the audit is done, local funding should be allocated using a fairer formula based on:

• road mileage

• population

That protects communities from disruption while still allowing the system to be modernized.

The current budget shows about $311.937 million in local subsidy from the Motor License Fund, which is why this transition protection matters.

8. Move transportation-related State Police funding out of transportation funding

Transportation funding should pay for transportation.

Right now, part of Pennsylvania’s transportation-related funding structure is used to support State Police costs. The Commonwealth’s 2026-27 budget document shows $250 million from the Motor License Fund allocated to State Police.

That should be moved into a separate public safety funding structure over a 5-year phase-in based on population.

This reform improves:

• transparency

• accountability

• transportation funding stability

A fuller municipal policing and State Police funding model should be addressed in a separate Public Safety Reform package, but this transportation reform makes clear that transportation user fees should not be used as a catch-all funding source.

9. Handle Turnpike debt honestly

The Turnpike’s debt burden did not come only from ordinary road use. The Turnpike reported about $17.64 billion in total outstanding debt and about $1.04 billion in annual debt-service payments in FY 2025.

This plan addresses that debt in three ways:

• move the annual legacy Turnpike payment burden imposed by state policy to the state

• refinance the remaining debt where beneficial

• use heavy commercial toll revenue to help pay down debt and cover infrastructure costs

This is a more realistic approach than pretending passenger tolls need to continue forever.

10. What this means for families

This plan is built around three priorities:

• cost-of-living relief

• government accountability

• infrastructure safety

For families, it means:

• no passenger tolls

• gas tax relief every year for 5 years

• roads and bridges fixed before more expansion

• clearer transportation spending

• a system that makes more sense long term

Bottom line

Pennsylvania does not need a more confusing system, Pennsylvania needs a fairer one.

This plan lowers costs for families, puts transportation money back toward transportation, requires heavy commercial vehicles to pay their fair share, and makes government more accountable for the condition of our roads and bridges.

Lower costs. Fix infrastructure. Restore accountability.