GOP Bill Could Add $250 Yearly Fee for EV Owners

A new federal proposal could require U.S. electric vehicle owners to pay additional fees as lawmakers look for ways to fund highway and infrastructure spending. The plan, led by House Transportation and Infrastructure Committee Chair Sam Graves, would revive earlier efforts to offset declining gas tax revenues as EV adoption grows.

The proposal comes amid broader policy shifts that have already impacted EV demand in the U.S., including the recent end of the federal consumer tax credit.

GOP proposal seeks new fees from EV and hybrid owners

According to a Reuters report, lawmakers are preparing a multi-year infrastructure bill that could include new annual fees for electric and hybrid vehicles.

Previous versions of the proposal included a $250 annual fee for EVs and $100 for hybrids, as well as earlier discussions around a one-time $1,000 fee for electric vehicle owners, according to Ford Authority.

The goal is to help fund $500 billion to $550 billion in infrastructure spending, including road and bridge repairs, which have traditionally been financed through gasoline and diesel taxes.

As EV adoption increases, those tax revenues are declining, prompting lawmakers to explore alternative funding mechanisms.

However, EV advocacy groups have pushed back on the proposal. The Electrification Coalition has argued that a $250 annual fee would be disproportionately high, noting that the average gasoline vehicle owner pays about $88 per year in fuel taxes.

States already impose similar EV fees amid shifting tax structure

At the state level, similar policies are already in place across much of the U.S.

Currently, 24 states charge additional annual registration fees for EVs and some hybrid vehicles, typically ranging from $50 to $200 per year. These fees are designed to offset lost fuel tax revenue as more drivers switch to electric vehicles.

Congress has not increased federal gas taxes in more than 30 years, instead relying on transfers from the general fund to cover rising infrastructure costs.

The renewed push for EV-specific fees highlights the ongoing challenge of adapting transportation funding models as the automotive industry transitions away from internal combustion engines.

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