$3.3B in road funds sit idle, yet Illinois drivers face record-high gas taxes

If Illinois state lawmakers are not going to spend the $3.3 billion sitting in the state’s road fund, drivers should get a break from the taxes going into it. Illinois gasoline taxes are No. 2 in the U.S.

An accumulation of over $3.3 billion of unused dollars in Illinois’ road fund shows Gov. J.B. Pritzker’s automatic gasoline tax hikes are not necessary, and lawmakers should halt them.

Illinois drivers have been paying more for gas every July since 2019, when Pritzker doubled motor fuel taxes and tied annual tax hikes to inflation. The state gas tax is now 48.3 cents per gallon, costing each driver an extra $143 annually and ranking Illinois as No. 2 in the country for highest gas taxes.

Road fund balance has ballooned in the past six years

From 2018 to 2024, state road spending increased nearly $1 billion, but because of constant tax and fee hikes, revenues have surged even faster and grown nearly 95% in the same period. In 2024 alone, the state’s road fund collected over $5 billion while spending under $4 billion.

The fund reserves have ballooned. Cash balances grew from $624 million in 2018 to $3.3 billion as of 2024, a 428% increase. Balances are projected to continue growing to nearly $3.5 billion by 2026. Illinois’ “lockbox” amendment prevents these funds from being redirected to other expenses, yet lawmakers continue to allow automatic gas tax hikes regardless of need.

Drivers are paying more than necessary

Motor fuel tax rates were doubled in 2019 from 19 cents per gallon to 38 cents. Since then, rates have risen automatically to match inflation, ballooning to 48.3 cents in 2025, the second highest in the nation.

Indexing the gas tax to inflation was sold as a way to ensure predictable road funding. In practice, it guarantees a tax hike every year, regardless of funding levels, for which state lawmakers don’t vote or take responsibility because the hikes are “automatic.”

Lawmakers can pause hikes – and should

Automatic tax hikes should pause whenever road funding balances exceed a set threshold, such as 50% of prior-year expenditures. That would create a 6-month reserve.

This policy would allow Illinois to maintain a sufficient balance to cover any potential shortfalls while relieving drivers of unnecessary taxes. The Civic Federation stated fund ratios above 50% indicate over-taxing. When balances exceed that level, governing bodies should adjust taxation.

Minnesota provides a useful benchmark: Its Trunk Highway Fund requires a minimum cash balance of just 15 days of highway spending. In 2024, the fund held a cash balance equal to 19% of annual highway spending while supporting one of the best road networks in the nation. Illinois’ cash balance was 84% of annual road spending.

Illinois would not be the first state to have a “fund trigger” mechanism. Colorado’s TABOR Check law mandates voter approval for allocation of state or local revenues which exceed limits. If voters don’t approve retention, excess revenue is returned as a tax refund, ensuring revenue growth is tied directly to public consent.

Illinois families deserve relief

Pausing automatic gasoline tax hikes when the road fund has a healthy surplus would provide meaningful relief to households struggling with inflation. Drivers deserve safe, well-maintained roads without shouldering unnecessary tax increases.

Putting the brakes on the automatic gas tax hikes is a practical, fair and fiscally responsible policy that gives families relief at the pump while keeping infrastructure in good repair.