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- You DON'T Have An Unpaid Toll
You DON'T Have An Unpaid Toll
There's much more to those texts on unpaid tolls than serving as a scam.
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What a wild last few weeks! Many new things happening in my personal and professional worlds that I am excited to share over time. Considering the level of coverage, I don't see much need for me to comment on NYC’s mayoral contest, though I recommend checking out all of the other NYC races from public advocate to city council, as well as other races in upstate NY including for mayors of Albany, Rochester, Syracuse, and Buffalo. Notably, Syracuse is set to see its first Black mayor and turnout was all over the place. Always interesting to see races deemed high turnout in a primary!
An E-Z Pass for the Whole Country: Why National Electronic Tolling is Long Overdue
Electronic tolling is one of the least glamorous topics in American infrastructure - yet it is one that touches millions of lives daily, shaping everything from our commutes to supply chains and even the environment. While it has quietly improved safety, travel time, and cost-efficiency since its introduction in the 1990s, the fragmented and inconsistent implementation of electronic tolling across the U.S. highlights a deeper issue: our fractured approach to federalism. The current system thrives on price discrimination, penalizes drivers based on which state issued their transponder, and reflects broader inefficiencies in how we govern infrastructure. It is time for a unified, national electronic tolling system which can remedy these issues and reduce greenhouse gas emissions. However, the reasons holding us back thus far are just as critical.
Yes, there is a world where you do not get those unpaid toll texts because the system is consistent, clear, and secure.
From Toll Booths to Gantries: A Technological Shift
Not too long ago, highway toll plazas were synonymous with long waits, frenzied lane changes, and cash fumbling. Electronic tolling, spearheaded by systems like E-Z Pass, revolutionized this experience. In states like Massachusetts, overhead gantries have entirely replaced booths, detecting transponders at highway speeds and snapping license plate photos for those without. This system not only speeds up travel but reduces emissions and accidents by eliminating bottlenecks and abrupt braking.
Massachusetts’ "pay-by-plate" system sends a bill to drivers without a transponder, but at a significantly higher rate. A Massachusetts E-Z Pass user might pay $0.50 for a toll, but a car sporting a New York E-Z Pass may be billed $1.00 for being a “non-resident,” and a driver without E-Z Pass $2.00 — all for the same road, the same distance, and the same technology.
I understand the case of charging cash or billed by mail users differently than electronic due to some logistical and administrative aspects of billing. However, charging for the same service from the same means (E-Z Pass), I argue, violates the interstate commerce clause and frankly I cannot wrap my mind around how it is accepted today with almost no discussion or legal action from my research.
Price Discrimination and the Patchwork of Interstate Tolling
This variation in pricing — not just between E-Z Pass and non-E-Z Pass drivers, but even among E-Z Pass holders themselves — is a classic case of price discrimination. While it is often defended as a residency benefit, it is technically avoidable: anyone can obtain an E-Z Pass from another state. A New Yorker driving in Massachusetts could sign up for a Massachusetts E-Z Pass and pay less, and vice versa.
The catch? Juggling multiple accounts and transponders (which often require maintaining a prepaid balance) quickly becomes inconvenient and inefficient. There is no technological limitation — a single transponder can work across dozens of states. The problem lies in policy. Further, SunPass and other systems exist so at some point you leave the system your transponder may fully work within or, worse, enter a state without electronic tolling entirely.
This system, driven by state-level control and revenue interests, mirrors broader issues in American governance, where decentralization breeds inefficiency. States maintain separate RMVs or DMVs, license boards, and other regulatory bodies, all of which lack integration and shared standards. The result? Drivers pay more, and the nation wastes time and money.
The same issue can be seen in the rollout of Real ID. It took decades to implement national standards because implementation rested on different processes by state. I am not aware of any other nation where what is accepted as a national ID is not only distributed regionally (by state or province), but formulated differently as well.
The Case for a National System
A national electronic tolling system would address the most pressing issues of the current framework:
Eliminate Price Discrimination: All drivers would pay the same toll for the same service, regardless of which state they live in or where they registered their E-Z Pass.
Reduce Administrative Waste: One national account instead of 50 fragmented ones means less overhead, fewer lost bills, and better customer service.
Improve Data Collection and Enforcement: Unified records could reduce toll evasion, correct errors (like invalid addresses or DMV records), and make enforcement fairer and more consistent. Right now, it is hard for states to collect money for tolls across state lines since databases of license plates differ, enabling evasion.
Boost Supply Chains: A unified system would also be great for commercial vehicles with truck movement across states saving companies time and fuel and ensuring quicker delivery of everything from consumer goods to vaccines.
Environmental Benefits: By reducing idling and congestion, cashless tolling cuts down carbon emissions, particularly in high-traffic areas near toll booths — improving air quality for nearby communities. Maintaining a consistent speed is very efficient.
Safety: More data is needed, but accidents are likely to be reduced by eliminating the need to change lanes or suddenly slow down in completely cashless, overhead gantry systems.
Despite these benefits, and in addition to the patchwork of implementation we have, dozens of states do not even have electronic tolling at all, let alone a system with any compatibility.
As electronic tolling is an amazing innovation, it is progressively being integrated into highways, parking garages, and airports. It has even been used for event-specific purposes like the New York State Fair, saving time and money. But the gap between such innovation and those states not implementing at all is only widening.
The Political and Bureaucratic Roadblocks
Despite the clear benefits, progress on a national tolling system has been slow. A federal mandate or uniform standard has been discussed and a version was actually passed in 2012!, but legislation has lacked enforcement teeth and sufficient incentives. This reflects America’s chronic hesitation toward federal integration — the same delay that has haunted the REAL ID initiative and countless infrastructure upgrades.
Some conservative and libertarian voices fear increased federal oversight. Yet paradoxically, national electronic tolling could reduce government size by consolidating services, increasing efficiency, and cutting redundant bureaucracies across states and the feds. Meanwhile, progressive voices worry about equity — and rightly so. Without careful implementation, a cashless toll system could criminalize poverty, subjecting low-income individuals without bank accounts or prepaid balances to higher fees and aggressive debt collection and increase certain forms of policing on the roads.
These concerns aren’t reasons to stall; they’re reasons to plan better. A national system must include:
Free or subsidized transponders (which already exist in many communities separated by bridges)
Waived minimum balances for low-income users
Clear privacy protections
Education campaigns to promote adoption
It's Already Happening — Just Not Uniformly
The technology already exists. Systems like E-Z Pass, SunPass, and FasTrak operate in different regions and often work across state lines. In Massachusetts, the gantry model is fully implemented. New York State has embraced cashless tolling. Other states like Utah use toll lanes with variable pricing for carpoolers and clean vehicles.
But each state sets its own rules, prices, and discount structures. This lack of standardization confuses consumers and limits adoption. Worse, it erodes the notion of a unified national highway system — an idea foundational to modern America since Eisenhower.
Infrastructure, Jobs, and the Just Transition
Yes, moving to a national cashless toll system will eliminate some toll collection jobs, but it will also create new ones. Construction, maintenance of gantry infrastructure, cybersecurity roles, and data management positions will all grow. A “just transition” plan can ensure workers are retrained and supported, much like the energy sector aims to do for fossil fuel jobs. But it is also right to be highly skeptical of the implementation of such a transition.
What's at Stake?
This isn’t just about saving a few minutes at the toll booth. It’s about modernizing a key piece of our infrastructure in a way that:
Saves money
Reduces emissions
Boosts economic productivity
Enhances national security and safety
Protects public health
Improves equity (if designed with intention)
The stakes include reducing supply chain friction, making road travel safer and smoother, and building smarter, leaner government systems that serve people across state lines with fairness and consistency.
All that to say, I am still a very proud member of The War On Cars and believe we can move toward more walkable communities, a high-speed rail network, and safe, multi-modal streets well within my lifetime. I will not pretend cars are not a necessity in many places and for some parts of our lives, but besides their climate impacts, they (including EVs), are highly dangerous. Any activity in which we can reduce our Vehicle Miles Traveled is a good one.
Final Thoughts: The E-Z Pass as a Metaphor
The fight over electronic tolling is emblematic of a broader national tension: the struggle between localized control and federal efficiency. Licensing boards, zoning decisions, and public health policies all mirror the inefficiencies found in our tolling system. When states act in isolation, everyone pays more — in time, in taxes, and in opportunity.
A unified tolling system will not solve all these problems, but it is a powerful step toward showing that integration does not have to mean overreach. It can mean clarity, cost-savings, and progress.
I believe that the conflicts between tolling charges for out of state residents and the interstate commerce clause also apply to telehealth. Why are medical training standards different across states in such a way that I cannot engage with a therapist while on a trip to another state?
There is certainly a case to be made on the need to utilize lived experience, decenter “experts,” and understand contexts when it comes to education and some other policies, but an all-or-nothing approach to these questions which underlie our binary political ideologies exacerbates all of the problems. Maybe we can apply a federal approach to tolling and pollution, but not other topics. That question, though, judicially, is reaching a breaking point.
I also have come to a new appreciation of decentralization as a protection against autocrats and certain federal directives. That said, I can still detest inefficiency and desire a true modernization of government. We all want our interactions with government to be quick and positive. Why not start with the DMV?
We have the tools. We know the benefits. The only thing we are waiting on is political - and social - will.
It’s time to stop fumbling with change — and start driving toward a smarter, more connected country.
I have been writing a version of this piece for over 6 years. It was my thesis in business law and I have added hundreds of citations to a running list. At well over 5k words, I wanted to highlight the most important parts and better tie all my thoughts together so I threw a few portions into an AI chatbot to see if it pulled out the same high-level themes I identified as well as how it interpreted them. As such, parts of this newsletter, while based entirely on my research and original writing, were written and supported by AI. I wanted to be wicked upfront about that, but also would love feedback as I consider it in the future.
What are your thoughts on my use of AI in this newsletter (and going forward)? |
A Quote To Remember Me By
“Administrative governance needs to permit people with very different conceptions of the good to live together in one polity.” - Steven M. Teles, “Minoritarianism Is Everywhere”
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Peace,
Kyle