PolicyBrief
H.R. 781
119th CongressJan 28th 2025
No Track No Tax Act of 2025
IN COMMITTEE

The "No Track No Tax Act of 2025" prohibits the use of federal funds for any activities related to implementing a mileage tax, including studying, proposing, or enforcing such a tax, or funding mileage tracking programs.

Darrell Issa
R

Darrell Issa

Representative

CA-48

LEGISLATION

No Track, No Tax Act of 2025: Bill Blocks Federal Funding for Mileage Taxes and Tracking Programs

The 'No Track No Tax Act of 2025' flat-out bans using any federal money to study, propose, set up, or enforce mileage taxes – basically, charging drivers based on how far they drive. This prohibition covers everything from researching the idea to actually implementing a system, including any programs that would track your mileage, at any level of government (Section 2).

Keeping the Government Out of Your Car?

The core of this bill is about preventing the government from using federal funds for anything related to mileage taxes. Think of it like this: no federal dollars can go towards figuring out how to charge you per mile you drive, or towards any technology that would keep tabs on your vehicle's movements for tax purposes. This includes state and local projects, too – if it involves federal funds, it's a no-go for mileage tax initiatives.

Real-World Rollout – Or Rather, Not Rolling Out

Because this bill stops funding at the research stage, there won't be any pilot programs popping up to test mileage-based taxes using federal funds. For everyday drivers, this means no new devices tracking your trips for tax purposes, at least not funded with federal dollars. For example, a construction worker who drives extensively for work won't have to worry about a federally-funded system tracking their miles and potentially leading to higher taxes based on their work-related driving.

Potential Potholes

While the bill aims to prevent a specific type of tax and tracking, there are questions about its long-term effects. One concern is how broadly 'mileage tax' is defined. Could this language accidentally block funding for other transportation projects? Also, while the bill blocks direct and indirect federal funding, determined opponents of the bill might try to find loopholes to fund these programs in other ways.

The Big Picture: Privacy vs. Infrastructure Funding

This bill taps into the ongoing debate about privacy versus the need for new ways to fund infrastructure. Current gas taxes are bringing in less money as cars become more fuel-efficient and electric vehicles become more common. Mileage-based taxes have been floated as a potential solution, but they raise significant privacy concerns due to the tracking involved. The 'No Track No Tax Act' aims to shut down the mileage tax option completely, at least as far as federal funding goes, prioritizing privacy protection over exploring this potential revenue source.