Are Toll Roads Fair? The Growing Debate Over Pay-to-Drive America

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Drivers who already pay fuel taxes have a reasonable question when a road also charges a toll: what is the extra payment buying? Being told that a toll and a fuel tax are different kinds of revenue does little to answer a complaint about the cost of the same trip.

Federal law allows toll revenue to pay maintenance costs as well as debt, so retiring a construction loan need not end the charge. That explains why the bill can keep coming; it does not explain whether drivers are getting enough for the extra money. A toll’s fairness turns on the trip it buys: a faster route a driver can choose is a different bargain from a charge they cannot avoid.

Why a toll can come on top of a gas tax

Federal highway and transit programs have relied largely on motor-fuel taxes credited to the Highway Trust Fund since 1956, according to the Congressional Research Service. Congress last increased federal motor-fuel tax rates in 1993, and these fixed cents-per-gallon taxes do not automatically rise with inflation or fuel prices.

Congress began transferring money from the Treasury’s general fund to keep the Highway Trust Fund solvent in 2008. In other words, the fund’s own revenue, largely fuel taxes, has not covered everything it pays for. Construction, resurfacing and day-to-day operation are different bills, even when they concern the same pavement.

Section 129 of the federal highway law allows covered toll revenue to pay project debt, facility improvement and maintenance, a reasonable return to private investors, and payments owed under a public-private agreement. If the public authority certifies annually that the facility is adequately maintained, Section 129 also allows revenue to support other purposes eligible for federal highway funds under that law.

A toll therefore need not be restricted to paying off the original construction loan, nor must every dollar stay on that road under the federal rule. Before treating a toll as a temporary charge, check the road’s governing law, financing documents and any agreement that sets its end conditions.

Whether a toll amounts to paying twice depends on whether it replaces another charge or adds to it, and whether its proceeds buy the road service being promised.

Tolling is growing, but free highways have legal protections

The Federal Highway Administration reports in Our Nation’s Highways that U.S. toll-facility mileage, including bridges and tunnels, rose from 5,746 miles in 2013 to 6,626 in 2023, a 15 percent increase. Tolling grew over that decade, but that does not mean every free highway is becoming a toll road. The distinction between an entire tolled road and a paid lane beside free lanes matters both to a driver’s choices and to the legal authority for charging.

Section 301 of federal highway law says highways built under that law must be free from tolls of all kinds, with the exceptions in Section 129. Those exceptions include building new toll roads, rebuilding roads that already charge tolls, and converting a free bridge, a free tunnel or a free federal-aid highway outside the Interstate System to a toll facility when it is reconstructed.

When a state uses Section 129 to add tolled lanes to an Interstate or to rebuild one, the number of free lanes cannot decrease, not counting carpool lanes or auxiliary lanes. Auxiliary lanes serve supplementary movements such as entering or leaving traffic, turning and changing speed. A proposal to add priced lanes while keeping the existing free lanes is consequently a different legal proposition from charging for all lanes of an existing free Interstate. These protections are not a blanket ban on every form of Interstate tolling.

Under the Interstate System Reconstruction and Rehabilitation Pilot Program, the transportation secretary may permit a state to toll an Interstate highway, bridge or tunnel to reconstruct and rehabilitate a corridor that cannot otherwise be adequately maintained or improved. A state applies to the secretary, and the pilot can cover three facilities, each in a different state.

In July 2026, an op-ed from Alabama’s U.S. senators, Tommy Tuberville and Katie Britt, posted on Tuberville’s Senate website, said the Trump administration was selecting Alabama’s Mobile River Bridge and Bayway as the first project to qualify for the pilot. The op-ed does not establish how many other applications are pending or how many places remain available.

ALDOT announced on Sept. 18, 2026, that financing for Phase One of the Mobile River Bridge and Bayway project was complete. It said no tolls would be collected during construction; tolling would begin when the new bridge and Phase One improvements opened, projected for late 2031.

The governor’s office said ALDOT issued a notice to proceed to the construction team on Sept. 25, after financing closed.

A separate provision, Section 166, lets vehicles that do not otherwise qualify pay to use a carpool lane. The authority running the lane must set up enrollment and automatic toll collection, vary the toll to manage demand and enforce the lane’s rules.

Some toll roads also predate their Interstate designation: the Pennsylvania Turnpike was incorporated into the Interstate System in 1957. An Interstate shield alone cannot reveal whether a toll is new, inherited or limited to a particular lane.

What supporters say a toll should buy

Reason Foundation, a nonprofit that promotes libertarian principles and favors wider use of tolls to rebuild Interstates, proposes a value-added tolling model that charges for the capital and operating costs of the facility used and delivers a higher level of service. Its proposed safeguards include restricting revenue to the tolled facility, waiting until construction or reconstruction is finished before charging, and using tolls to replace, not supplement, existing fuel taxes.

In recommendations for the 2026 federal transportation bill, submitted in September 2025, Reason proposes opening the Interstate tolling pilot to all 50 states. To prevent what it calls “double taxation,” participating states would have to give motorists and truckers fuel-tax rebates for all miles traveled on the converted highways. A proposed rebate is not an entitlement on every existing toll road; check the actual program before counting it as savings.

Reason says revenue bonds let lenders provide construction money before a toll project opens, with repayment coming from future toll revenue. A private developer usually contributes its own investment as well, reducing the debt that needs to be issued in that financing model.

Reason also argues that long-term highway concessions create incentives to reduce lifetime project costs and guarantee maintenance for the agreement’s full term. Those are claims about contract design; a particular deal still needs scrutiny of its prices, obligations and allocation of risk.

On Washington’s Interstate 405 express toll lanes, the transportation department updates prices every few minutes using traffic volume and speed, raising them as lanes fill and lowering them when capacity is available. Here the price is doing another job besides raising money: discouraging enough drivers from entering to preserve a faster trip for those who do.

The Washington State Department of Transportation’s fiscal year 2025 tolling report says Interstate 405 express-lane users saved an average of 12 minutes northbound and 11 minutes southbound compared with the general-purpose lanes. The same report says the southbound morning commute saw the lowest performance in the single-lane section between Lynnwood and Bothell, where the tolled lane averaged 43 miles per hour, still faster than the general-purpose lanes there. Tolled lanes in every other section averaged 45 miles per hour or more during peak periods.

On Interstate 405, qualifying carpools can use the lanes for free with a Good To Go! pass, and registered vanpools and transit travel toll-free with a pass. The fiscal year 2025 report also records rising traffic volumes across all lanes and user types, including general-purpose traffic and transit, with worse peak-period performance in the first half of that year.

The reported time savings support a real benefit for paying users, while the slower section shows that a priced lane does not guarantee a fast trip under every condition. These results do not establish that pricing improved travel in every free lane or across the wider road network.

The same toll can impose very different burdens

Lewie Pugh, executive vice president of the Owner-Operator Independent Drivers Association, told a Senate subcommittee in February 2020 that truckers predominantly pay tolls out of pocket because shippers seldom reimburse them.

In that testimony, the association put the cost of administering federal fuel taxes at less than 1 percent of the revenue collected and favored reasonable increases in gasoline and diesel taxes. It also objected to using toll revenue for urban transit and other non-highway infrastructure when truckers bear the charge.

For a historical comparison, a 2016 Congressional Research Service report put collection costs above 10 percent of revenue on many toll roads, even with electronic collection, excluding collection infrastructure. It estimated federal fuel-tax collection at about 1 percent of revenue.

Land Line magazine reported in February 2025 that the association opposes expanded tolling and vehicle-miles-traveled fees, which charge by the mile, in the next highway bill. The association’s case favors a different way of collecting the money and questions whether the driver who pays receives the benefit.

The Federal Highway Administration’s primer on congestion-pricing equity notes research finding that tolls, fuel taxes and sales taxes can all place a larger burden on poorer people than on richer people. The alternative to a toll is not a costless road; someone pays through a toll, another tax or another source of public money. But an equal dollar charge can take a larger share of a smaller budget, so fairness cannot be measured by the posted rate alone.

A driver’s ability to use another route matters to the bargain: a slower alternative may be workable for one trip and unsuitable for another. A discount can reduce a burden, but its eligibility rules and trip limits determine whose burden it reduces. The toll relief program for Virginia’s Downtown and Midtown tunnels shows how such limits work.

VDOT’s toll-relief page, last updated May 7, 2026, lists the discounts and limits below.

Applicants need a Virginia E-ZPass account, a passenger vehicle with no more than two axles, and proof of income and residency. Enrollment starts in person at the E-ZPass customer-service centers in Norfolk or Portsmouth or the DriverERT center in Portsmouth, followed by linking the account’s toll tag to the approval confirmation code. A driver outside the eligible localities or beyond the weekly trip limit cannot assume the same relief applies.

A public authority and a private lease pose different questions

Indiana’s Toll Road shows what a private lease involves: the Indiana Toll Road Concession Company, the private company that became the road’s original concessionaire, or leaseholder, submitted a $3.8 billion winning bid for a 75-year lease executed in April 2006. The concessionaire assumed operational responsibility in June 2006. In return for the lease, the Indiana Finance Authority received a cash payment of approximately $3.8 billion when the agreement closed.

After the original concessionaire’s bankruptcy in 2014, the Indiana Finance Authority awarded IFM Investors a $5.725 billion, 66-year concession in March 2015, according to the Federal Highway Administration’s project profile. Nearly all of that sale’s proceeds were to repay the original concessionaire’s creditors. The second transaction should therefore not be read as a second windfall of the same size for the state.

The company’s September 2024 report, published by the Indiana Finance Authority, says ownership of the concession company transferred from Cintra and Macquarie to IFM Investors in May 2015.

The project profile says the agreement sets toll rates and allowable increases and that the replacement concessionaire must follow the performance standards in the 2006 agreement. The relevant questions are what the contract requires and who bears a shortfall, rather than whether private money makes a project risk-free.

The Indiana Finance Authority’s fiscal year 2025 financial statements say the authority owns the highway and leases it to the Indiana Toll Road Concession Company, which operates it and receives the toll and concession revenues for the lease term.

Colorado’s E-470 is operated and maintained by a public highway authority guided by eight member jurisdictions, including three counties. Its August 1988 financing plan combined tolls with a $10 vehicle-registration fee inside the voting boundaries and highway expansion fees inside the authority’s area.

E-470’s 2026 budget keeps toll rates at 2025 levels, with the authority stating that continued tolling supports road operation and maintenance without reducing service. Public operation does not by itself eliminate a toll, just as private financing does not establish that every proposed price is justified.

E-470’s Board of Directors reviews and sets its toll rates annually. Its September 2026 board agenda welcomed public participation through a virtual meeting link or phone and listed public comment as an agenda item. Consult the authority’s meeting-agenda page for the current notice and its attendance details; a board meeting need not be considering a rate increase.

The minutes of E-470’s December 12, 2024 meeting record that its board adopted Resolution 24-04 to keep 2025 toll rates unchanged, with those rates to remain in effect until superseded by another board resolution.

Where a public board sets the rates, a driver facing a proposed increase can look for the board’s agenda, the financial explanation and the document that authorizes the rate, and ask how the added revenue will be used.

Electronic collection changes the bill and the privacy questions

On E-470, drivers without an ExpressToll account are billed through license-plate tolling: cameras capture the front and rear plates and a statement goes to the vehicle’s registered owner at the address on file with the motor-vehicle agency. The authority charges higher rates for license-plate billing than for ExpressToll accounts, attributing the difference to higher tracking and billing costs.

The fees below are those posted on E-470’s website when checked on October 9, 2026.

E-470 adds a one-time $5 late fee on its second statement; the third statement adds no new fees. After 90 unpaid days, the account goes to a collection law firm, with a one-time $20 collection fee.

If payment still is not made, E-470 sends a notice of civil penalty that adds $25 per notice; the recipient may request an administrative hearing on receiving it. If that notice remains unpaid after 30 days, a hearing officer issues a final order adding a $20 court fee. These are that authority’s rules, so rely on the amounts and deadlines printed on its notice, and use its dispute route, rather than assuming a national penalty schedule.

E-470 provides a customer-service route for billing questions, a toll-transaction dispute form with supporting documents, and an administrative adjudication process after a civil penalty is issued. If a bill seems wrong, use the operator’s dispute process and retain the statement and supporting records rather than letting the payment notices accumulate.

Virginia’s transportation department says its E-ZPass system collects account, vehicle and payment information, then records the times, dates and locations of passage through toll locations.

Virginia’s E-ZPass privacy policy limits routine access to staff and agents who need it for their jobs, but permits sharing for unpaid-toll collection, toll challenges, court orders or applicable law, and deidentified research. Check the applicable operator’s privacy policy for the information collected and the circumstances in which it may leave the toll system.

Mileage fees change the funding base, not every fairness question

Oregon’s OReGO program charges by the mile and sends revenue to the State Highway Fund to maintain and improve roads and bridges. A toll charges for use of a particular road or bridge.

OReGO’s published rules accept Oregon-registered light-duty passenger vehicles rated at least 20 miles per gallon, including electric, hybrid, gasoline and diesel vehicles. Taxes paid on fuel purchased for a participating vehicle are deducted from its mileage charge.

Oregon must offer mileage-reporting choices with or without location tracking through the Global Positioning System (GPS). Its transportation department receives mileage rather than routes or locations, while private account managers handle customer data and payments.

Oregon’s transportation department describes OReGO as voluntary at this time. Beginning July 1, 2027, drivers of used electric vehicles must choose at registration renewal between paying a flat fee and paying by the mile. Its published schedule extends that choice to new electric vehicles on Jan. 1, 2028, and hybrid and plug-in hybrid vehicles on July 1, 2028. As of October 2026, those changes are still ahead, and they are not a requirement that every Oregon driver join the mileage program.

Before accepting or rejecting a toll proposal, follow the promised credit into the actual rules and the promised benefit into the operating results.