New Proposal Threatens to Drive Up Electric Vehicle Prices: What Consumers Need to Know

A new bill advancing in the House of Representatives could introduce a $130 annual national registration fee for electric vehicle (EV) owners, aimed at generating funds for highway repairs and infrastructure projects.

Spearheaded by Republican Representatives Sam Graves and Rick Larsen, the legislation proposes this fee to be adjusted every two years, eventually reaching $150.

Hybrid vehicle owners aren’t exempt, as they would face a separate annual fee starting at $35, which is set to increase to $50, acknowledging their partial reliance on gasoline.

Proponents of the bill argue that the measure will provide crucial additional funding for highway infrastructure under the BUILD America 250 Act. This comprehensive transportation package seeks to introduce new fees on battery-powered vehicles while increasing investments in roads, bridges, and railways.

Additionally, the bill aims to establish new regulations for autonomous commercial trucks.

The proposed increase comes as the Highway Trust Fund – which finances maintenance of the nation’s interstate system – faces the risk of running dry, according to estimates from the Congressional Budget Office.

Most of the trust fund’s revenue comes from federal gas taxes, which EV drivers largely avoid paying. 

That funding gap has already prompted several states to introduce separate registration fees for EVs.

A bill moving through the House of Representatives could force EV owners to pay an additional $130 annual national registration fee to help fund highway repairs and infrastructure projects

The legislation, backed by Republican Reps. Sam Graves (left) and Rick Larsen (right), would impose the fee each year, with the amount increasing every two years until it reaches $150

Gas prices are climbing amid disruptions in the Strait of Hormuz tied to the conflict with Iran

EV advocate Albert Gore told the The Wall Street Journal the bill would place an ‘unfair premium’ on EV drivers even as household budgets remain stretched thin

As a solution, the reps. backing the bill say the new fees would strengthen the Highway Trust Fund by ‘ensuring all highway users pay their share’. 

Currently, the federal gas tax stands at 18.4 cents per gallon for gasoline and 24.4 cents per gallon for diesel – rates that have remained unchanged since 1993.

But as gas prices climb amid disruptions in the Strait of Hormuz tied to the conflict with Iran, President Trump has floated suspending the federal gas tax altogether in an effort to ease pressure on consumers.

The proposal has sparked backlash from environmental advocates and EV industry groups, who argue the new registration fees unfairly single out EV owners at a time when many Americans are already struggling with higher costs.

Albert Gore, executive director of the Zero Emission Transportation Association, told the The Wall Street Journal the bill would place an ‘unfair premium’ on EV drivers even as household budgets remain stretched thin.

In total, EV drivers could face a higher cost to use their vehicles over traditional ones which is estimated to be between $73 and $89 in gasoline taxes, according to data from ZETA.

The One Big Beautiful Bill Act attempted to impose a similar fee for road maintenance, but it was left out of the final law. 

The One Big Beautiful Bill attempted to impose a similar fee for road maintance, with their $250 annual federal registration fee, but that was struck down from the final law

Lawmakers hope to formally introduce the measure soon before the current transportation funding authorization expires on September 30

Critics argue the proposed EV fees would barely make a dent in the nation’s highway funding crisis

One of the biggest problems facing lawmakers is that Americans are using less gas overall, even as they are driving more. 

According to the US Energy Information Administration, drivers used about 374.05 million gallons of gasoline a day in 2025, down from 2024 levels.

That’s partly because cars have become far more fuel-efficient over the years, with smaller engines and a growing number of hybrid models on the road.

Critics also argue the proposed EV fees would barely make a dent in the nation’s highway funding crisis, which has struggled for decades as gas tax revenue falls short.

At a congressional hearing in 2023, a representative from the Congressional Budget Office estimated that a $100 yearly fee on EV owners would raise around $20 billion between 2024 and 2033. 

But the Highway Trust Fund is projected to face a much larger $241 billion shortfall during that same period.

EVs still make up only a small share of cars on US roads, and sales have cooled following the elimination of federal EV tax credits. 

Americans bought an estimated 78,409 EVs in April – down 22 percent from the same month last year, according to Motor Intelligence.

The House Committee on Transportation and Infrastructure, which drafted the bill, said lawmakers hope to formally introduce the measure soon before the current transportation funding authorization expires on September 30.