California lawmakers are clashing over a controversial plan to divert millions from the state’s sky-high gas tax to create exclusive highway lanes for Olympic athletes and officials during the 2028 Los Angeles Games.
Key Facts:
- California plans to redirect at least $18 million in gas tax funds to construct “VIP lanes” for the 2028 Olympics.
- State Sen. Roger Niello and other Republicans criticized the move as misuse of funds meant for road repairs.
- The gas tax increase taking effect July 1 is unrelated to this budget plan, officials claim.
- Critics argue the lanes will not improve long-term infrastructure and only benefit Olympic participants.
- Deputy Finance Director HD Palmer defended the project, saying it’s part of a broader $5B infrastructure budget.
The Rest of The Story:
California Senate Republicans are pushing back against Governor Gavin Newsom’s plan to carve out special Olympic lanes using gas tax funds originally earmarked for infrastructure.
Critics argue the project prioritizes elite guests over everyday Californians who continue to pay the highest gas taxes in the country.
Sen. Roger Niello said the plan “isn’t going to change the infrastructure at all,” and instead reassigns money meant for repairs and new construction.
“Gas tax money is intended for infrastructure improvements… and that’s not what they’re doing here,” he added.
He suggested a loan would be a more appropriate funding tool since the event is expected to generate massive revenue.
State officials argue the plan is justified and modeled after similar efforts from the London 2012 Olympics.
“We’re talking about being able to move teams and coaches… efficiently,” said Palmer, who noted the appropriation is small relative to the state’s $5 billion infrastructure spending this year.
CA lawmakers outraged at plan to divert gas tax revenue to ‘VIP' Olympics lanes https://t.co/Z0WmfulBc1
— FOX Business (@FoxBusiness) June 27, 2025
Commentary:
It’s no surprise Newsom’s administration found a way to redirect taxpayer money from the already outrageous gas tax toward a project that serves the elite.
This move is exactly the kind of top-down favoritism Californians have come to expect from Sacramento.
Rather than fixing California’s crumbling highways, leaders want to build luxury lanes for Olympic athletes and likely government VIPs.
Hosting the Olympics should be a point of pride, not an excuse to shift public funds toward private convenience.
Billions will be made from tourism, broadcasting, merchandising, and sponsorships—plenty of sources exist to fund special lanes without dipping into essential infrastructure funds.
The burden shouldn’t fall on working families. Most Californians won’t benefit from these VIP lanes. They won’t get faster commutes or better roads.
These lanes will sit in Los Angeles, while taxpayers across the entire state continue dodging potholes and suffering through gridlock.
If additional lanes are truly needed, they should be built as part of a statewide traffic solution—not for two weeks of Olympic festivities.
Newsom’s plan sends a clear message: infrastructure upgrades for the people can wait, but pampering Olympic elites takes priority.
The people paying $6 or more per gallon don’t get fixed roads—they get excuses and redirection.
If state leaders want to impress the world during the Olympics, perhaps they should start by fixing what’s broken and showing the world that California can take care of its own first.
Instead, they seem more focused on prestige than practicality.
It’s like Newsom is channeling Marie Antoinette: “Let the taxpayers eat cake.”
The Bottom Line:
California’s gas tax revenues—already the highest in the nation—are being used to build elite-only express lanes for the 2028 Olympics, drawing sharp criticism from Republican lawmakers.
Despite officials defending the plan as minor and strategic, many see it as a slap in the face to everyday drivers stuck with failing roads and soaring prices.
The controversy reveals ongoing frustration with how California prioritizes political image over real infrastructure needs.
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