The U.S. House Transportation and Infrastructure Committee completed its markup of the BUILD America 250 Act Thursday, which includes proposed federal annual registration fees of $130 for EVs and $35 for plug-in hybrids.
What we know: After a 14-hour session, the Committee advanced the bill to the full House of Representatives for consideration. If approved, the bill would impose the registration fee on EV and hybrid drivers.
The fee would then increase by $5 every two years starting in 2029, capping at $150 for EVs and $50 for plug-in hybrids.
Revenue from the fees would be collected by the state motor vehicle registration departments and would be deposited into the Highway Trust Fund.
The fees would be on top of any state fees.
What they’re saying: The Committee for Responsible Federal Budget estimated the fees would raise $30 billion over a decade for the Highway Trust Fund.
“This bill makes historic investments in our bridges and other critical infrastructure, reduces costs and delays in building, ensures states have the resources and flexibility they need, bolsters the Highway Trust Fund,” said Transportation and Infrastructure Committee Chairman Sam Graves (R-MO). “I look forward to moving this bill on the House floor in the near future, and to working with the Senate to pass a final bill before the current law expires on September 30.”
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Worth noting: The fees faced some pushback about their punitive nature to the EV sector, but they ultimately passed through the committee with overwhelming bipartisan support.
“You can’t have a big-league economy with little-league infrastructure,” said Transportation and Infrastructure Committee Ranking Member Rick Larsen (D-WA). “The BUILD America 250 Act will create good-paying jobs while restoring aging bridges, repairing crumbling roads, and supporting safe, accessible rail, transit, and bike infrastructure.
In comparison: ICE drivers currently pay 18.4 cents per gallon in federal taxes on gasoline and 24.4 cents for diesel, according to the U.S. Energy Information Administration. The federal tax rates have remained the same since 1993.
A Consumer Reports estimate from 2025 showed the average driver of an ICE vehicle pays $73 and $108 in federal gasoline taxes per year.
The Congressional Budget Office estimated the revenue for the Highway Trust Fund for 2023 to be $43 billion.
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