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Republicans propose fees on EVs, other passenger vehicles to fund transportation programs

  • The House Transportation and Infrastructure Committee proposed annual registration fees of $250 for electric vehicles and $100 for hybrids to fund transportation programs in a 2025 budget reconciliation proposal.
  • The proposal responds to the Highway Trust Fund's declining purchasing power caused by static federal fuel taxes unchanged since 1993 and insufficient revenue inflows.
  • Current funding relies mainly on gasoline and diesel taxes, but shortfalls required $275 billion in transfers since 2008, with $118 billion from the 2021 infrastructure law, and a projected $242 billion deficit by 2035.
  • Committee Chairman Sam Graves emphasized that electric vehicles have used public roads for an extended period without contributing financially to their upkeep, while opponents contend that the proposed fees could hinder the growth of EV ownership and unfairly burden certain drivers.
  • If passed, the proposed fees would introduce new revenue sources to the trust fund for the first time in more than three decades, although experts agree that additional actions will be necessary to ensure its long-term financial stability.
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Republicans include $250 annual fee for electric vehicle drivers in budget plan

(The Center Square) – Republican lawmakers on the House Transportation and Infrastructure Committee have moved forward their fiscal year 2025 budget proposal, which includes repealing billions of dollars in unobligated climate funds from the Inflation Reduction Act, modernizing air traffic…

·Cherokee County, United States
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  • 52% of the sources are Center
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Transport Topics broke the news in on Tuesday, April 29, 2025.
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