Transportation insecurity is a core driver of the affordability crisis. Many people in the United States struggle to pay for or access reliable transportation needed to reach the essential people and places in their lives. This compounds the challenge of finding low-cost groceries, good-paying jobs, and affordable health care. As one immediate action to address this urgent transportation insecurity crisis, we at CCI propose federal tax credits to households that purchase bicycles, ebikes, or other qualifying micromobility devices, including devices accessible to people living with various types of disability. By combining the concept of tax credits proposed in the E-BIKE Act (Electric Bicycle Incentive Kickstart for the Environment Act) with the Inflation Reduction Act’s point of sale machinery for electric vehicles (EVs), this proposal would allow a bike shop to instantly apply the tax credit as a discount to the customer at the register and the IRS would reimburse the shop within about three days.¹ We propose a total budget of $37.5 billion to fund a universal ebike program.²

This policy could be introduced by the Senate Committee on Finance and the House Committee on Ways and Means. Representative Mike Thompson (D-CA) sits on the House Committee on Ways and Means as the ranking member on the Subcommittee on Tax and also co-chairs the Congressional Bike Caucus and co-leads the E-BIKE Act. Representative Vern Buchanan (R-FL) co-chairs the Bike Caucus and has introduced the bipartisan America Bikes Act with Rep. Thompson.³ Senator Schatz (D-HI) leads the E-BIKE Act in the Senate and Rep. Panetta (D-CA), who is also on the House Committee on Ways and Means, leads the bill in the House.

The program could include an additional $3 billion “bikes for clunkers” component that would allow people to turn in gas vehicles with poor emissions performance to be retired in exchange for additional credits for bike purchases. Participants would receive a voucher for up to an additional $3,000 that would function like cash to purchase qualifying micromobility devices at qualifying retailers. A “bikes for clunkers” program would follow the same basic structure as the Car Allowance Rebate System, the 2009 federal scrappage program known as “cash for clunkers,” with eligibility requirements including a maximum of 18 miles per gallon.⁴ One difference from the original program is that every vehicle would not be required to be scrapped. Instead, while certain vehicles would go automatically to scrapping, some qualifying vehicles would have their gas engines removed and be made available at zero cost for gas-to-EV conversion programs. These conversions could train and employ new EV mechanics while increasing supply of EVs.

National average gas prices have hovered over $4 per gallon for nearly six months, with no signs of coming back down.⁵ Unexpectedly high transportation costs make it harder to handle other expenses like housing, energy, and groceries. Recent polling found that two in five people are extremely or very concerned about being able to afford gas in the next few months.⁶ Drivers are looking for any way they can to reduce miles and save gas dollars to cover other costs in this tight economy. National polling conducted by CCI found that 73 percent of drivers agree that they have no choice but to drive as much as they do, and a majority of drivers (53 percent) would like to have more transportation options.⁷ Looking beyond the gas pump, about one third of the lowest-income households in the United States do not have access to a car at all, which can lead to comparable or even worse economic stress than that caused by high gas prices.⁸ These nondrivers rely on other transportation options, which are often sparse in many parts of the country.⁹

Transportation insecurity is a limiting factor for access to essentials like food, healthcare, jobs, and school.¹⁰ In other words, when people cut back on trips—whether they are trying to save money or simply do not have access to reliable transportation options—they also tend to have a harder time accessing affordable groceries, keeping up with preventative healthcare, finding or maintaining a job, or consistently attending school. In this sense, providing accessible low-cost transportation options is a critical intervention point to help people build affordable, enjoyable lives.

More than half of all trips taken in the United States are under three miles.¹¹ These are the trips that can be made on foot or using small vehicles like bicycles, scooters, or assisted mobility devices. Because of this, micromobility vehicles can serve as important tools for helping people save money by reducing car trips. They can also fill a need for reliable transportation for people who do not have easy access to a car. Even for the many households that own a car, family members often share a vehicle and are forced to forgo opportunities when that vehicle is not available. An infusion of ebikes would directly reduce household gas costs while also increasing independence and expanding access to groceries, job opportunities, education, and healthcare.

Eliminating car trips under one mile would cut 3.4 million metric tons of carbon dioxide (CO₂) emissions.¹² US drivers spend approximately $1.5 billion on gas every year for trips under one mile.¹³ Many of these trips could be replaced by bicycle trips to keep that money in people’s pockets. This policy would result in less money for fossil fuel companies and more money for working people, as well as greater control for people over their daily transportation choices. Many more people would have autonomy to travel around their neighborhoods without paying for gas or even owning a car. Diversifying people’s transportation options to include micromobility devices will give individuals and households greater control of their lives.

This policy also lays the groundwork for a full transition away from car dependence, which would lead to even larger emissions reductions. Micromobility can help bridge gaps and allow people to own fewer cars per household even before transit service improvements are fully built out. Additionally, increasing the number of bike-equipped households would likely immediately increase trips taken by transit, as people can use bikes to bridge the first and last mile between transit and their origin and destination points. As a stepping stone away from car reliance, this investment could spur support for massive investments in public transit operations and infrastructure, transformed streetscapes that prioritize safety and comfort for pedestrians and cyclists, as well as electric bus manufacturing.¹⁴

Greater ebike demand could also lead to industrial policy toward more high-road US manufacturing of ebikes, which could add good jobs to the economy and increase self-sufficiency of US transportation supply chains. This proposal encourages US assembly as a step toward more domestic manufacturing.¹⁵ Industrial policy to favor and support US manufacturing would be a logical companion that could be supported by future adjustments to the made-in-US requirements of this tax credit.

An increase in bike ownership would also logically lead to a larger constituency pushing for street safety and increased funding for bike and pedestrian infrastructure at local, state, and federal levels. Currently, unsafe local streets present a huge barrier preventing people from walking and bicycling on short local trips to grocery stores, parks, schools, or work. Increased funding for widespread buildout of basic infrastructure like protected bike lanes and sidewalks is necessary to fully realize the potential of micromobility to bring affordable and climate-friendly travel to many US households. As more people own and use bikes regularly, they will see the inadequacies of the infrastructure and ask for safer streets.

The US Environmental Protection Agency states that “Car trips of under a mile add up to about 10 billion miles per year, according to the 2009 U.S. National Household Transportation Survey.”¹⁶ Only 2 percent of vehicles currently driven on US roads are electric, so one can assume about 9.8 billion of these miles are driven by gas cars.¹⁷

Considering the average US fuel economy of 5.6 miles per gallon, US drivers use approximately 390 million gallons of gas every year for trips under a mile.¹⁸

As of September 7, 2026, $4.157/gallon is the average US gas price.¹⁹ This equates to more than $1.5 billion dollars spent to fuel trips under one mile. Moreover, this only includes direct fuel cost. When mileage costs for repairs and maintenance are factored in the amount paid for trips under one mile grows larger still.