Following the removal of the $7,500 federal EV tax credit last year, a new proposal could further reshape the economics of electric vehicle ownership in the United States. The chair of the House Transportation and Infrastructure Committee is advocating for a $250 annual fee on EVs to help fund highway maintenance. The proposal has already drawn criticism, with opponents labeling it “unfair.”
The timing is tied to the expiration of the current U.S. surface transportation law, which is set to lapse on September 30, 2026. Speaking at a U.S. Chamber of Commerce infrastructure event, Representative Sam Graves stated, “We would like to get money from EVs,” and indicated that the next five-year transportation bill could allocate between $500 billion and $550 billion toward highways and bridges.
A key source of contention lies in how road maintenance is currently funded. Owners of gasoline-powered vehicles contribute through federal fuel taxes, averaging about $88 per year. Electric vehicles, by contrast, do not consume gasoline and therefore do not contribute to this specific revenue stream, despite using the same road infrastructure.
This structure is designed so that higher fuel consumption, typically associated with more frequent road use, results in greater contributions toward infrastructure upkeep. As a result, EVs effectively bypass this mechanism, creating a growing gap in transportation funding.
Some states have already introduced their own EV-related fees to offset this imbalance. These charges vary significantly, typically ranging from $50 to more than $200 annually in states such as Texas. However, those funds are allocated at the state level, meaning a new federal fee could be layered on top of existing obligations.
Since 2008, more than $275 billion has been transferred from the federal government’s general fund to support road maintenance, including $118 billion from the 2021 infrastructure law. The increasing adoption of electric vehicles has contributed to declining fuel tax revenues, placing additional strain on traditional funding models.
At the same time, lawmakers face a compressed timeline to reach an agreement before the September 30 deadline. The process may be further complicated by the upcoming congressional elections in November, which could delay negotiations.
Hybrids are also part of the discussion, with a proposed $100 annual fee under consideration. This is particularly relevant as many consumers have shifted toward hybrid vehicles amid slower EV adoption in 2025, prompting automakers such as Hyundai and Toyota to expand their electrified offerings.
