Fresh Energy opposes proposed increases and cuts to Minnesota's transportation funding

Minnesota's House Taxes Committee convened on April 21, 2025, to discuss critical funding issues impacting the state's transportation infrastructure and climate goals. Key testimonies highlighted significant concerns regarding proposed cuts to transit funding and the implications of increasing electric vehicle registration fees.

Anjali Banes, leading the transportation team at Fresh Energy, emphasized the inadequacy of current revenue sources for the highway user tax distribution fund, which includes the gas tax, motor vehicle sales tax, and tab fees. She pointed out that the gas tax is declining not due to the rise of electric vehicles, which represent less than 1% of passenger vehicles, but rather due to improved fuel efficiency in gasoline vehicles. Banes argued that simply raising the annual electric vehicle registration fee from $75 to $200 does not address the broader funding challenges facing Minnesota's transportation system. Instead, she called for a comprehensive solution that evolves funding sources without targeting specific technologies.

Sarah Wolfe, the strategic policy director with Minnesota Interfaith Power and Light, echoed these concerns, particularly regarding proposed budget cuts to transit services. Wolfe highlighted that the bill under consideration would cut $40 million from Metro Transit in fiscal year 2026-2027 and $64 million in 2028-2029, alongside reductions to Greater Minnesota transit and special transportation services. She stressed that these cuts come at a time when the need for robust public transit is greater than ever, as it provides essential options for those who cannot or choose not to drive.

Both Banes and Wolfe urged the committee to reconsider these funding cuts and the proposed delays to critical climate policies, arguing that such actions would undermine Minnesota's progress toward equitable and effective climate solutions. Their testimonies reflect a growing concern among advocates for sustainable transportation and climate action in the state, emphasizing the need for a balanced approach that supports both infrastructure and environmental goals.