The U.S. House Transportation and Infrastructure Committee recently approved a budget reconciliation proposal that introduces a federal annual registration fee of $250 for electric vehicles (EVs) and $100 for hybrid vehicles. This move aims to address the funding shortfall in the Highway Trust Fund (HTF) by ensuring that all vehicle owners contribute to infrastructure maintenance, regardless of their vehicle’s fuel source.
The proposal includes:
- $250 Annual Fee for EVs: Owners of electric vehicles will be required to pay a $250 annual registration fee. This is an increase from the initially proposed $200 fee.
- $100 Annual Fee for Hybrids: Hybrid vehicle owners will continue to pay a $100 annual fee, as previously proposed.
- Removal of $20 Fee for Gasoline Vehicles: The committee decided to eliminate the proposed $20 annual fee for gasoline-powered vehicles, following internal opposition.
These fees are intended to supplement the HTF, which traditionally relies on gasoline tax revenues. The new fees are projected to generate approximately $38 billion over 10 years.
The proposal is part of a broader budget reconciliation package that includes investments in national security and infrastructure and deficit reduction measures, which includes rescinding funds from certain programs and introducing new fees to achieve a net deficit reduction of more than $10 billion. The approved proposal will advance to the House Budget Committee for further consideration.
