Electric vehicle owners across the United States could face a new fee for their driving choices if a proposal heard in House committee this week becomes law.
It would establish a $200 fee on electric cars and a $100 fee on hybrids, which will take effect this year and end in 2035. The proposal also includes an annual federal registration fee on all vehicles beginning in October 2030 and ending in October 2034.
Any state that does not comply with the fee collections on EVs will have federal funding withheld up to 125 percent of the amount of fees owed. That consequence would take effect on the first day of the next fiscal year beginning after Sept. 30, 2026.
The proposal would also eliminate nearly $4.6 billion in spending on Green New Deal programs such as the Low-Carbon Transportation Materials Grants distributed under the Federal Highway Administration.
The measure includes investments to replace the nation’s air traffic control technology and to bolster the Coast Guard’s efforts to thwart drug and human trafficking.
“It’s only fair that EVs pay these user fees like other motorists. In fact, the new user fees provision addresses the broken Highway Trust Fund revenue stream in a substantial manner for the first time in over 30 years.”
The fees would raise at least $50 billion for highway repairs in the first 10 years, according to the House committee, and are intended to compensate for the current 18-cents-per-gallon gas tax that EV drivers do not pay. Some Republicans earlier this year proposed levying a $1,000 tax on EVs to cover road repairs and eliminating the current tax credit meant to incentivize EV purchases.
The gas tax has remained the same since its inception in the 1990s, with Congress refusing to institute an increase to cover rising repair costs.
Fees are currently assessed on EVs in 39 states, while 28 states are assessing fees on hybrids to cover the costs of road repairs.
The House committee will consider the proposal on April 30.
