House Backs Electric Vehicle, Hybrid Fees in Budget Bill
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A massive House-passed tax and budget measure promises to return a federal account central to transportation maintenance projects to solvency.
Annual registration fees of $250 for electric vehicles and $100 for hybrid vehicles were tucked in a Republican-led procedural budget bill the House advanced May 22 along party lines. Revenue from the proposed registration fees would supplement the Highway Trust Fund.
Rep. Sam Graves (R-Mo.), chairman of the influential Transportation and Infrastructure Committee, pointed to potential benefits for the nation’s freight and commuter corridors if the highway account receives revenue in addition to that collected from the fuel tax.
“The bill includes provisions from the Transportation and Infrastructure Committee to provide historic investments in the United States Coast Guard to strengthen our national and border security, as well as … ensuring that electric vehicles begin contributing to the Highway Trust Fund,” the chairman said soon after the bill’s passage. The congressional transportation panels are tasked with updating federal highway programs by next year.
The trust fund is backed by insufficient revenue from a gas and diesel Clinton-era tax rate. Its most recent funding supplement was approved as part of 2021’s $1.2 trillion bipartisan infrastructure law.
Rep. Sam Graves (R-Mo.), chairman of the Transportation and Infrastructure Committee, pointed to potential benefits for freight and commuter corridors if the highway account receives revenue in addition to fuel tax revenue. (J. Scott Applewhite/Associated Press)
Overall, the reconciliation budget bill, which requires simple majorities for passage in Congress, reflects most of President Donald Trump’s domestic policy agenda. Funding in the bill, if enacted, would be prioritized for military weapons modernization, border security and immigration enforcement, and it would extend the Trump-era 2017 tax cuts. The budget bill, titled the One Big Beautiful Bill Act, also would amend or overhaul programs linked to the country’s health care systems and social safety net.
House Republican leaders delivered on a pledge to pass the bill before Memorial Day. Majority Leader Steve Scalise (R-La.), a key negotiator throughout the measure’s consideration, sought to provide context after the vote. “House Republicans started preparing for budget reconciliation with President Trump over a year ago, and I’m incredibly grateful to the president, our committee chairs, House leadership team, and all of our dedicated Republican members for the months of late nights and hard work that got us to this moment,” he said.
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“This ‘big, beautiful bill’ is a huge win for all Americans,” Scalise continued, “and I urge the Senate to pass it as quickly as possible so we can get it to President Trump’s desk and start delivering the relief Americans have been waiting for.”
The high-profile bill awaits consideration in the Republican-led Senate. Since the start of the year, the White House has consistently called on Congress to clear the comprehensive tax and budget package.
Transportation stakeholders, such as , endorsed the Republicans’ tax and budget package. Reacting to its provisions, the group explained that “electric cars are freeloaders. They currently do not contribute one cent to the [Highway Trust Fund].”
“The 2025 reconciliation package changes that by imposing a registration fee for the first time that is roughly equivalent to what a conventional car pays through the gas tax each year. Hybrids will also pay a small fee to ensure every car on the road is paying its fair share,” per ATA.
U.S. Chamber of Commerce Executive Vice President and Chief Policy Officer Neil Bradley also touted the bill’s approval. “The House sent a clear message today — American workers and businesses want and need permanent tax relief. A competitive, pro-growth tax code doesn’t just grow the overall U.S. economy, it raises wages for workers and improves the lives of Americans,” he said.
Senate Democratic Leader Chuck Schumer and House Minority Leader Hakeem Jeffries derided the bill. (J. Scott Applewhite/Associated Press)
House Democrats unified in opposition to the legislation. Minority Leader Hakeem Jeffries (D-N.Y.) derided the partisanship of the moment. “We could have partnered together to try to find a bipartisan path toward building an affordable economy for hardworking American taxpayers, but you chose to go it alone, to try to drive your extreme right-wing policies down the throats of the American people,” Jeffries said. “And that’s what this ‘one big ugly bill’ represents.”
Senate Democratic Leader Chuck Schumer (D-N.Y.) agreed with the House Democratic caucus’ viewpoint. “This is not one big, beautiful bill. It’s ugly. There’s nothing beautiful about stripping away people’s health care, forcing kids to go hungry, denying communities the resources they need and increasing poverty,” he said.
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