House Bill Proposes Annual EV Fees to Fund Federal Highways

Lawmakers in the U.S. House of Representatives have introduced bipartisan legislation that would impose an annual fee on electric vehicle owners to contribute to federal highway funding. The proposed bill, known as the BUILD America 250 Act, would require a $130 annual fee for electric vehicles and a $35 fee for plug-in hybrid electric vehicles.

The fees would increase by $5 annually starting in 2029, capping at $150 for EVs and $50 for plug-in hybrids. The provision is part of a broader five-year, $580 billion highway reauthorization bill aimed at addressing infrastructure funding before the current law expires on September 30. Most federal road repair revenue currently comes from gasoline and diesel taxes, which electric vehicles do not pay.

The legislation was introduced by House Transportation and Infrastructure Committee Chairman Sam Graves, a Republican from Missouri, and the committee's top Democrat, Rick Larsen of Washington. Graves stated the bill ensures electric vehicle owners begin paying their fair share for the use of our roads.

The proposal has drawn criticism from electric vehicle and environmental advocacy groups. They argue the fee is disproportionately high...