Lawmakers rolled out a five-year highway plan last Sunday that would add a new federal registration fee for electric vehicles if it becomes law: $130 a year for battery-only cars and $35 for many plug-in hybrids. The provision is tucked inside the BUILD America 250 Act and is billed as a way to prop up federal road funding as gasoline tax receipts shrink. The bill still has to clear both the House and Senate, so the charge is not locked in yet.
Section 1129 would direct the Federal Highway Administration to require states to collect the fee, with the amounts scheduled to climb by $5 every two years starting in 2029 and capped at $150 for EVs and $50 for PHEVs, according to pv magazine. The committee's published bill text also authorizes a penalty for states that do not comply, and the Administrator may withhold an amount equal to 125 percent of what a state owes, according to the BUILD America 250 Act.
Transportation & Infrastructure Committee Chair Sam Graves said the BUILD America 250 Act "ensures that electric vehicle owners begin paying their fair share for the use of our roads," and Ranking Member Rick Larsen described it as a bipartisan, "user pays" fix for the Highway Trust Fund, according to a Transportation & Infrastructure Committee press release. Lawmakers say the package pairs that new revenue stream with billions of dollars for bridges and transit.
How the fee would hit drivers
The federal fee would stack on top of whatever states already charge, and that total can climb fast. Washington state EV owners face roughly $225 in state registration charges today, according to local coverage from KIRO 7, while other states such as Michigan and New Jersey levy several hundred dollars, according to reporting by InsideEVs. Consumer groups warn that a flat federal fee does not track miles driven, so low-mileage drivers could end up paying more than motorists who still buy gasoline.
Where the money is supposed to come from
For decades, the Highway Trust Fund has relied heavily on the federal gas tax, a revenue stream that has not kept up with demand as vehicles become more efficient and more drivers switch to electricity, according to analysis cited by the National Association of Counties. Supporters of the bill argue that a federal EV fee would create a predictable, dedicated source of funding to repair bridges and maintain roads.
Who's pushing back
Environmental groups and EV advocates counter that the proposal is punitive and undercuts charging infrastructure programs. The NRDC called it a "punch in the gut," and Evergreen Action warned that the fee would slow adoption while trimming investments in EV chargers. Both organizations have urged lawmakers to strip the provision.
What happens next
The Transportation & Infrastructure Committee held a lengthy markup and approved the bill in late May, according to the National Association of Counties. The measure now heads to the House floor and, if it clears the House, would then need Senate approval and the president's signature to become law, according to local reporting. Given pushback from advocates and some lawmakers, the fate of the EV fee in the final package remains uncertain.
For now, EV buyers and owners should treat this as an active policy fight in Washington. The BUILD America 250 Act sets the terms, but its fate will be decided as lawmakers juggle road funding needs, climate goals and the political risks of new fees.
