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House Draft Bill Would Add Annual EV Registration Fee to Fund Roads

The plan seeks to plug the Highway Trust Fund gap by charging EVs at registration instead of tracking miles.

Overview

  • Lawmakers are considering a bipartisan House draft, the BUILD America 250 Act, that would charge electric vehicles $135 a year and plug‑in hybrids $35 starting in October 2026, with scheduled increases to $150 and $50 by 2031.
  • Fees would be paid during vehicle registration, avoiding vehicle‑miles‑traveled systems that require logging how far people drive and raise privacy concerns.
  • Backers cite a widening funding gap as the federal gas tax, unchanged since 1993, raises about $40 billion a year while typical federal transportation spending is about $60 billion.
  • Committee Chairman Sam Graves said the fee makes EV owners pay a fair share, while top Democrat Rick Larsen framed the draft as a compromise, and the package must move before the current highway law expires in September.
  • EV advocates argue the charge adds undue costs, pointing to estimates that gas drivers pay about $73 to $89 a year in federal gas tax and noting that EV owners’ fuel and maintenance savings would shrink.