How the Federal Gas Tax Lost 40 Percent of Its Buying Power

The Fiscal Policy Podcast with Fexingo: Government Budgets, Stimulus, and Public Spending · Jul 6, 2026 · 11m · transcript

Episode 95 of The Fiscal Policy Podcast. Lucas and Luna break down the quiet crisis of the federal gas tax: set at 18.4 cents per gallon in 1993 and never indexed to inflation. By mid-2026, that tax has lost roughly 40 percent of its purchasing power. Congress hasn't raised the rate in over three decades, even as infrastructure costs have soared. The hosts walk through the mechanics of what this means for the Highway Trust Fund, the annual shortfall that now exceeds $20 billion, and the political reasons lawmakers prefer general-fund transfers over a simple inflation adjustment. They…