US lawmakers are considering a new federal fee that would charge electric vehicle owners $130 per year, arguing that EV drivers should contribute more directly to highway funding because they do not pay the federal gasoline tax. The proposal has already drawn criticism from EV and environmental groups, who say the flat fee would overcharge many electric car owners compared with what typical gasoline drivers pay in federal fuel taxes.
The proposal is part of the BUILD America 250 Act, a transportation funding measure that seeks to address the gap created as more drivers move away from gasoline-powered cars. The federal gas tax helps fund road repairs and infrastructure, but electric vehicle owners do not pay it because they do not buy gasoline.
Transportation and Infrastructure Committee Chairman Sam Graves, a Republican from Missouri, said the bill is intended to make sure EV owners begin paying their fair share for using public roads.
Under the proposal, electric vehicle drivers would pay $130 per year. Starting in 2029, that amount would rise by $5 every two years until it reaches $150. Plug-in hybrid owners would face a separate annual fee of $35, which would also increase over time to $50.
EV and environmental advocacy groups quickly criticized the plan. Katherine García, director of the Sierra Club’s Clean Transportation for All Campaign, called the proposed charge an irresponsible tax on EV and plug-in hybrid drivers, arguing that it would not meaningfully solve the Highway Trust Fund shortfall.
Albert Gore, executive director of the Zero Emission Transportation Association, said he understands the need to keep the Highway Trust Fund solvent, but described the proposed fee as punitive and unlikely to make a meaningful difference to federal road funding.
One of the biggest objections is that the fee would apply equally to all EV owners, regardless of how much they drive. A person who only drives a few thousand miles per year would pay the same amount as someone using an EV for far more daily mileage.
The current federal gasoline tax is 18.3 cents per gallon and has not increased since 1993. According to research cited from Consumer Reports, the average American driver pays roughly $70 to $90 per year in federal gas taxes, which is notably lower than the proposed $130 annual EV fee.
Consumer Reports has also argued that flat EV fees do not reflect actual road use. Lower-mileage drivers, including seniors or occasional drivers, may currently pay only around $40 to $50 per year in federal gas taxes through fuel purchases. A fixed annual EV fee could therefore charge these drivers far more than an equivalent gasoline vehicle owner.
The same analysis also notes that fixed fees may shift less of the burden onto high-mileage commercial vehicles such as delivery vans, rideshare cars and robotaxis, which can travel many more miles than private passenger cars.
The proposed federal fee would come on top of EV-specific fees that already exist in many US states. These state-level charges are intended to raise money for road maintenance as fuel-tax revenue changes with the growth of electric vehicles.
Some of those fees are already substantial. In Michigan, EV owners are expected to pay $267 in 2026, while plug-in hybrid owners must pay $113. In New Jersey, registering an EV costs $270, and drivers are required to pay the first four years upfront.
The federal EV fee is not law yet. The measure still needs to be formally introduced and passed by both chambers of Congress before it can reach the president’s desk.
Supporters of the bill want to complete the process by September 30, when the current transportation funding law expires. Until then, the proposal is likely to remain a major point of debate between lawmakers, EV advocates, environmental groups and drivers concerned about how road funding should be handled in an increasingly electric vehicle market.
