Bipartisan bill in Congress includes $130 annual EV registration fee

Amidst the ongoing challenges facing the 119th Congress, one issue has garnered bipartisan support: the financial responsibility of electric vehicle (EV) owners. The Transportation and Infrastructure committee has introduced a bill aimed at funding surface transportation over the next five years, which includes a notable annual fee for EV users. The proposed legislation, known as the "Building Unrivaled Infrastructure and Long-term Development for America’s 250th Act," outlines a $130 federal registration fee for electric vehicle owners. Sam Graves (R-MO), the committee chair, expressed pride in what he called a historic investment of over $50 billion in the nation’s bridges, emphasizing that the bill ensures EV owners contribute fairly to road maintenance. If approved, this fee would increase by $5 every year starting in 2029, eventually reaching $150. Plug-in hybrid electric vehicles (PHEVs) will also face fees, starting at $35 annually and rising to $50 over time. Additionally, if state transportation departments fail to collect this federal tax, they risk losing 125% of the owed amount from their highway funding. Currently, road funding in the United States relies on a mix of federal and state gas taxes, vehicle registration fees, and local budgets. As the number of fuel-efficient PHEVs and gas-free EVs rises, the revenue available for road maintenance decreases. While it may seem reasonable to ask these vehicle owners to contribute, especially given that heavier vehicles may cause more road wear, it’s worth noting that their impact is minimal compared to larger vehicles like garbage trucks and buses.