A move by the U.S. House Transportation and Infrastructure Committee could force EV owners to pay a federal fee for owning an electric vehicle, delivering another blow to the EV segment.
The details: Republican Rep. Sam Graves, chair of the committee, plans to introduce legislation in early April that would collect funds from EV owners to help pay for U.S. highway repairs as part of a surface transportation bill, Reuters reported.
In 2025, House Republicans proposed a new $250 annual fee on EVs and $100 for hybrid vehicles, but it was not included in a massive tax and spending bill.
The current surface transportation law, enacted in 2021 under former President Joe Biden, expires Sept. 30.
In February 2025, a group of Republican senators proposed a $1,000 tax on EVs for road repair costs as part of a plan to kill the then-in-place $7,500 federal tax incentive for electric vehicles.
Some states already charge fees for EVs to cover road repair costs, which are intended to make up for lost gasoline tax revenue.
What they’re saying: "We would like to get money from EVs," Graves said at a U.S. Chamber of Commerce infrastructure event, indicating he expects the five-year bill to include $500 billion to $550 billion in funding for highways and bridges, per Reuters.
Why it matters: Another federal cost tied to EV ownership could make an already challenging sales environment even tougher—further complicating affordability conversations as retailers work to move EV inventory amid softer demand and the loss of key consumer incentives.
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Between the lines: Graves’ proposed EV fee is one of the latest moves by the Trump administration that could affect broader EV adoption, especially as consumer demand for EVs slows.
Just last week, the Department of Justice sued the California Air Resources Board, aiming to stop moves by the state that bypass federal measures intended to roll back tighter fuel emissions standards.
President Donald Trump delivered the biggest blow to the EV segment with the elimination of federal EV tax incentives in September, as part of the "One Big Beautiful Bill Act" (OBBBA), enacted in July.
Advocacy groups like the Electrification Coalition have opposed the proposed $250 EV fee, noting that the average gas tax contribution from a gasoline vehicle is only about $88 per year.
What they’re saying: “Electric vehicles (EVs) have increasingly become the punching bag for transportation funding challenges, often singled out as a solution to HTF shortfalls despite representing a relatively small share of vehicles on the road,” stated the Electrification Coalition in a February position statement.
“Even in states with relatively high EV adoption, these fees generally generate only a few million dollars annually, often accounting for well under 1–3% of total state transportation revenues.”
Between the lines: Dealers are facing a U.S. policy environment that continues to double down on gas-powered cars over EVs, adding pressure to a segment already strained. The combination of new fees, fewer incentives, and broader regulatory uncertainty could make it harder to convert shopper interest into purchases, particularly among price-sensitive buyers.
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