Electric car owners could be forced to pay as much as $150 annually under a new tax proposed by bipartisan leaders of the U.S. House Transportation and Infrastructure Committee.
A proposed EV fee would start at $130 annually in October 2026 under a new bipartisan draft of a five-year surface transportation funding bill. The fee could increase by $5 each year until it reaches a maximum of $150 annually. Plug-in hybrid owners would face a $35 fee starting in October, potentially rising to $50 by the end of the legislation in 2031.
The current version of the highway funding measure is set to expire in September.
Why Is Congress Considering an EV Fee?
Rep. Sam Graves, a Republican from Missouri and the panel’s chairman, said in a statement that the EV fee would ensure electric vehicle owners begin paying their share for road use. Rep. Rick Larsen, a Washington Democrat and the panel’s top Democrat, said the bipartisan highway bill agreement represents a commitment to compromise.
The federal government currently collects 18.4 cents per gallon on every U.S. gasoline purchase to help pay for road and transit construction projects, and most states add their own fees. EV drivers have traditionally avoided paying into the federal government’s road fund.
That money goes into the U.S. Department of Transportation’s Highway Trust Fund, which distributes funds to states for road and transit projects. As vehicles have become more fuel-efficient and more drivers have switched to EVs and hybrids, less money per mile driven has been collected even as road use has increased. Lawmakers have been looking for ways to close that gap in federal gas-tax revenue.
The federal gas tax has not increased since 1993 and brings in about $40 billion per year at its current level, according to the Tax Policy Center. The federal government typically spends about $60 billion on transportation projects, and infrastructure advocates say that amount is barely enough to maintain the nation’s roads and transit systems. Most states also levy gas taxes for local road projects.
How Would the New EV Fee Be Collected?
EV drivers would pay the new fee when they register their cars. The proposal differs from other ideas that have been floated to replace gas-tax money that is not collected from EV drivers. Vehicle-miles-traveled, or VMT, programs would tax drivers based on how many miles they drive on U.S. roads rather than how much gasoline they buy.
Mileage-based road-tax proposals have historically been controversial because critics question how the government would monitor travel without infringing on privacy.
Supporters of the current highway bill draft say the EV fee would not require drivers to have their travel tracked or reported. EV owners would simply pay the annual fee when registering their vehicles.
What Would the Fee Mean for EV Owners?
Owners of electric models saved an average of about $8,811 on ownership and maintenance compared with the best-selling traditional cars over the time it takes to drive 200,000 miles, according to Consumer Reports.
A driver who chooses a new or used EV could save $2,200 annually on gas, according to the U.S. Department of Energy. Hybrid drivers could save $1,500 annually on gas, the agency says.
A new $130 annual fee would reduce those savings. EV supporters have argued that the fee would add a significant financial burden for owners who already typically drive more expensive vehicles.
When South Carolina lawmakers considered a user fee of 4.5 cents per kilowatt-hour for EV charging at public stations, the Electrification Coalition, which lobbies for EV-friendly policies, said in a February 2026 statement that the proposal would impose significant additional costs without increasing the state gasoline tax.
This article originally appeared on USA TODAY. Reporting by Keith Laing, USA TODAY. USA TODAY Network via Reuters Connect.
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