Author Topic: Highway Funding Bill Includes $130 Annual Fee on Electric Vehicle Owners  (Read 126 times)

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Offline Elderberry

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Legal Insurrection by Mary Chastain  May 18, 2026

This is bipartisan. Yes, even the Democrats are okay with it.

The Washington Examiner reported that the bipartisan highway funding bill includes a surprise for electric vehicle owners.

Those owners could face a $130 annual fee with a $5 increase every two years until the fee hits $150 for electric vehicles and $50 for plug-in hybrids:

    Section 1129. Registration fee on motor vehicles.

    This section requires the Administrator of the Federal Highway Administration to impose an annual registration fee to be collected by each state of $130 for a covered electric vehicle (EV) and $35 for a covered plug-in hybrid vehicle. Beginning in 2029, the Administrator is required to biennially increase both fee amounts by $5, stipulating that the fee for covered EVs will not exceed $150 and the fee for covered plug-in hybrids will not exceed $50. To ensure compliance with the requirements of this section, the Administrator is directed to withhold an amount equal to 125 percent of the amount owed from the state’s highway apportionment if a state does not comply.

“The bill also strengthens the Highway Trust Fund by ensuring all highway users pay their share for the use and improvement of the nation’s roads,” the Committee on Transportation & Infrastructure wrote in its press release. “As a result, the BUILD America 250 Act injects the Highway Trust Fund with its first new stream of revenue for infrastructure in over three decades.”

Apparently, electric vehicles hinder the government’s ability to make money:

Infrastructure experts have long warned that the increased use of electric vehicles could severely deplete funding for the nation’s roads and bridges. That’s because the federal government funds upkeep for infrastructure projects through the federal gas tax — 18.4 cents per gallon for gasoline and 24.4 cents per gallon for diesel.

More: https://legalinsurrection.com/2026/05/highway-funding-bill-includes-130-annual-fee-on-electric-vehicle-owners/

Online DefiantMassRINO

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No Federal Auto Excise Taxes ... ever.  That's expanding the Federal Government's taxing powers.

If states or municipalities want to find a way to tax electric vehicles to pay for roads, that's within their current purview.

It's a short stretch from Federal Excise Taxes on electric autos to Federal Excise Taxes on all autos.

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Offline Smokin Joe

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No Federal Auto Excise Taxes ... ever.  That's expanding the Federal Government's taxing powers.

If states or municipalities want to find a way to tax electric vehicles to pay for roads, that's within their current purview.

It's a short stretch from Federal Excise Taxes on electric autos to Federal Excise Taxes on all autos.
I agree. There are Federal Taxes on fuels, tires, and other bits. Let the States add electric vehicle fees as part of their registration process, but I don't want the Feds in this game. Carve out one block of vehicles, and whatever the folks running the show don't like can be taxed off the roads, one model block, engine size, vehicle type at a time.
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Offline IsailedawayfromFR

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No Federal Auto Excise Taxes ... ever.  That's expanding the Federal Government's taxing powers.

If states or municipalities want to find a way to tax electric vehicles to pay for roads, that's within their current purview.

It's a short stretch from Federal Excise Taxes on electric autos to Federal Excise Taxes on all autos.
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