As fuel prices remain elevated amid ongoing instability in the Middle East, more American drivers are reconsidering electric vehicles and plug-in hybrids as a way to cut fuel costs. But a newly proposed bipartisan transportation bill in Congress could add new annual fees for EV and PHEV owners across the United States.
The proposed legislation, known as the Build America 250 Act and tied to a broader five-year Surface Transportation Reauthorization package, would introduce annual federal registration fees of $135 for fully electric vehicles and $35 for plug-in hybrids. Under the House proposal, those fees would gradually rise by $5 over time, eventually reaching a cap of $150 for EVs and $50 for PHEVs.
Supporters of the measure argue the fees are necessary to maintain the nation’s transportation infrastructure as gasoline tax revenues continue to decline.
Why Congress Wants New EV Fees
The federal Highway Trust Fund finances road, bridge, and transit projects across the country. Traditionally, the fund has relied heavily on federal fuel taxes — approximately 18 cents per gallon for gasoline and 24 cents for diesel.
Because battery-electric vehicles do not use gasoline, and plug-in hybrids use significantly less of it, lawmakers say EV owners contribute less toward maintaining the roads they use.
Sam Graves, chairman of the House Transportation and Infrastructure Committee, described the proposal as a way to ensure EV drivers “pay their fair share” for road usage.
Meanwhile, Rick Larsen, the committee’s top Democrat, backed the compromise while emphasizing that the fee structure was designed to avoid being overly punitive toward EV adoption.
According to congressional estimates, the proposed fees could generate more than $38 billion for the Highway Trust Fund over the next decade. However, that figure still falls short of the roughly $40 billion generated annually from existing federal fuel taxes.
EV Drivers Already Pay Extra Fees in Many States
One major criticism of the proposal is that many EV owners already pay additional state-level registration fees intended to offset lost gasoline tax revenue.
More than 30 U.S. states currently charge annual EV surcharges, with some exceeding $200 per year. If the federal proposal becomes law, EV owners in certain states could face combined yearly fees significantly higher than those paid by drivers of gasoline-powered vehicles.
That could slightly reduce the long-term cost advantages that have helped make electric vehicles increasingly attractive, especially as fuel prices remain volatile in 2026.
Still, even with additional registration costs, EVs generally remain cheaper to operate over time thanks to lower charging costs, reduced maintenance requirements, and fewer moving parts compared to internal combustion vehicles.
Highway Bill Includes EV Charging Investments
Despite the proposed EV fees, the legislation also includes major investments in transportation infrastructure and electric mobility.
The bipartisan bill would allocate funding to expand the nation’s EV charging network while maintaining support for public transit systems and bridge repair programs. Lawmakers say the goal is to modernize U.S. infrastructure while creating a more sustainable transportation system.
The broader package also includes billions in funding for the U.S. Coast Guard and the Federal Aviation Administration, including investments aimed at modernizing air traffic control systems.
At the same time, the proposal would roll back several programs created under the Inflation Reduction Act, including grants tied to low-carbon transportation materials and environmental review initiatives.
Will the EV Fee Become Law?
The legislation is still moving through Congress and faces several hurdles before becoming law.
After advancing through the House Transportation and Infrastructure Committee, the proposal must still clear the House Budget Committee and receive approval from both chambers of Congress. Senate Democrats could push back against the EV fee provision or seek modifications before any final agreement is reached.
For now, the proposal highlights a growing debate surrounding how governments should fund infrastructure in an era where electric vehicles are becoming more common and gasoline tax revenues are slowly declining.
As EV adoption accelerates across the U.S., policymakers are increasingly searching for new ways to replace the traditional fuel-tax model that has funded American highways for decades.
