Bipartisan House legislation that would impose a $130 annual charge on electric vehicles and $35 on certain plug-in hybrids has been introduced. Brought forth by Representatives Rick Larsen and Sam Graves, the measure is part of a five-year highway reauthorization totaling $580 billion before current law expires on September 30 and is designed to fund transport infrastructure repairs.
The Transportation and Infrastructure Committee plans to consider the proposal Thursday, with supporters arguing electric vehicles should contribute to maintaining roads they use.
Federal road repair funding comes primarily from diesel and gasoline levies that battery-powered vehicles avoid entirely. The proposed charges would increase by $5 yearly starting 2029, reaching $150 for fully electric models and $50 for plug-in variants over time. Congress has declined to raise fuel taxes for three decades despite climbing maintenance costs that have created persistent funding shortfalls.
Several states already collect electric vehicle fees to address road funding gaps through various mechanisms, and although some Republican senators proposed a $1,000 electric vehicle levy in February 2025, that proposal gained limited traction.
This legislation drew sharp criticism from environmental advocates. The Sierra Club argued the bill reduces charging infrastructure funding while imposing what it called an irresponsible burden on electric and plug-in hybrid operators. The Electrification Coalition noted last year that a $250 electric vehicle fee would exceed the roughly $88 annual federal gas tax paid by typical combustion engine vehicles, suggesting disproportionate treatment. Critics contend the measure could slow electric vehicle uptake precisely when transportation electrification gains momentum.
Since 2008, over $275 billion has been transferred from general funds toward road repairs, including $118 billion from the 2021 infrastructure package, demonstrating the magnitude of revenue shortfalls from declining gas tax adequacy.
Rising fuel efficiency among combustion vehicles and growing electric vehicle market share both erode traditional funding sources. Policymakers are now facing pressure to identify sustainable long-term revenue mechanisms as transportation patterns evolve away from liquid fossil fuels.
The legislation also addresses autonomous vehicle safety regulations. Transportation Department regulations establishing performance standards for self-driving buses, trucks, and other commercial vehicles operating without human drivers would be required within two years. These rules would override state laws but exclude passenger cars from federal oversight.
Autonomous school buses transporting children would need human operators under the proposal regardless of technological capabilities, reflecting safety concerns around young passengers.
November’s congressional elections may complicate reaching agreement before the September 30 deadline when current highway authorization expires. Lawmakers acknowledge that funding negotiations face challenges given the political calendar and competing priorities. The highway authorization timeline creates pressure for resolution during an election year when legislative compromises typically prove difficult to achieve.
Failure to reach agreement could force temporary extensions or the continuing resolutions that maintain existing funding levels without addressing long-term structural issues. Electric vehicle makers like Rivian Automotive Inc. (NASDAQ: RIVN) will be following the discussions in Congress about the proposed EV fee since it could increase adoption friction.
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