A bill moving through the US House of Representatives could require electric vehicle (EV) owners to pay an additional $130 annual national registration fee to help fund highway repairs and infrastructure projects. The legislation, backed by Republican Representatives Sam Graves and Rick Larsen, would impose the fee each year, with the amount increasing every two years until it reaches $150.
Hybrid Vehicles Also Targeted
Hybrid vehicles would also face a separate annual fee, despite relying partly on gasoline engines. This fee would start at $35 and eventually climb to $50. Lawmakers say the proposal would generate additional funding for highway infrastructure through the BUILD America 250 Act, a sweeping transportation package that would levy new charges on battery-powered vehicles while boosting spending on roads, bridges, and railways. The bill would also establish new rules for autonomous commercial trucks.
Highway Trust Fund at Risk
The proposed increase comes as the Highway Trust Fund, which finances maintenance of the nation's interstate system, faces the risk of running dry, according to estimates from the Congressional Budget Office. Most of the trust fund's revenue comes from federal gas taxes, which EV drivers largely avoid paying. That funding gap has already prompted several states to introduce separate registration fees for EVs.
As a solution, the representatives backing the bill say the new fees would strengthen the Highway Trust Fund by 'ensuring all highway users pay their share.' Currently, the federal gas tax stands at 18.4 cents per gallon for gasoline and 24.4 cents per gallon for diesel, rates that have remained unchanged since 1993. However, as gas prices climb amid disruptions in the Strait of Hormuz tied to the conflict with Iran, President Trump has floated suspending the federal gas tax altogether to ease pressure on consumers.
Backlash from Environmental Advocates
The proposal has sparked backlash from environmental advocates and EV industry groups, who argue the new registration fees unfairly single out EV owners at a time when many Americans are already struggling with higher costs. Albert Gore, executive director of the Zero Emission Transportation Association, told The Wall Street Journal the bill would place an 'unfair premium' on EV drivers even as household budgets remain stretched thin.
In total, EV drivers could face a higher cost to use their vehicles over traditional ones, estimated to be between $73 and $89 in gasoline taxes, according to data from ZETA. The One Big Beautiful Bill Act attempted to impose a similar fee for road maintenance, but it was left out of the final law.
Funding Shortfall Concerns
One of the biggest problems facing lawmakers is that Americans are using less gas overall, even as they drive more. According to the US Energy Information Administration, drivers used about 374.05 million gallons of gasoline a day in 2025, down from 2024 levels. That is partly because cars have become far more fuel-efficient over the years, with smaller engines and a growing number of hybrid models on the road.
Critics also argue the proposed EV fees would barely make a dent in the nation's highway funding crisis, which has struggled for decades as gas tax revenue falls short. At a congressional hearing in 2023, a representative from the Congressional Budget Office estimated that a $100 yearly fee on EV owners would raise around $20 billion between 2024 and 2033. But the Highway Trust Fund is projected to face a much larger $241 billion shortfall during that same period.
EVs still make up only a small share of cars on US roads, and sales have cooled following the elimination of federal EV tax credits. Americans bought an estimated 78,409 EVs in April, down 22 percent from the same month last year, according to Motor Intelligence. The House Committee on Transportation and Infrastructure, which drafted the bill, said lawmakers hope to formally introduce the measure soon before the current transportation funding authorization expires on September 30.
