U.S. lawmakers have proposed new annual federal fees for electric vehicles and plug-in hybrid vehicles as part of a broader five-year transportation funding package under consideration in Congress.
The proposal is included in the Surface Transportation Reauthorization Bill, also referred to as “BUILD America 250,” a $580 billion highway funding package intended to replace the current federal transport programme before its expiration on Sept. 30.
Under the draft legislation, battery-electric vehicle owners would pay an annual federal fee of $130, while plug-in hybrid owners would face a yearly charge of $35.
Beginning in 2029, the fees would increase by $5 annually until reaching maximum levels of $150 for battery-electric vehicles and $50 for plug-in hybrids.
The legislation would require U.S. states to collect the fees through vehicle registration systems.
According to the proposal, states that decline to implement the fee collection mechanism could face reductions in federal transportation funding.
Supporters of EV registration fees have argued that electric vehicle owners contribute less directly to highway maintenance funding because they do not pay gasoline or diesel taxes through fuel purchases.
Federal road infrastructure in the United States is largely financed through fuel taxes, including the federal gasoline tax of 18.4 cents per gallon, which has remained unchanged since 1993.
The latest proposal follows previous efforts by Republican lawmakers to introduce EV-specific charges at the federal level.
In 2025, Republican senators proposed a separate $1,000 electric vehicle fee, while an earlier federal proposal suggested a $200 annual charge for EV owners.
In addition to introducing vehicle fees, the draft bill would reduce funding for several clean transportation initiatives, including EV charging infrastructure, electric freight programmes, electric bus deployment and projects supporting disadvantaged communities.
A growing number of U.S. states have already implemented separate registration fees for electric vehicles as EV adoption rises and fuel tax revenues decline.
The proposed legislation highlights increasing debate in the United States over how to fund transportation infrastructure as the automotive market gradually shifts away from internal combustion engine vehicles.
