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EV Owners Could Face New $130 Annual Fee
NEWS

EV Owners Could Face New $130 Annual Fee

20 May 2026

Electric vehicle owners in the United States could soon face a new annual federal fee under a bipartisan transportation proposal aimed at funding roads, bridges and other infrastructure programs.

New Proposal Targets EV And Plug-In Hybrid Owners

The proposed legislation, known as the BUILD America 250 Act, would introduce a $130 annual fee for electric vehicles and a $35 annual fee for plug-in hybrids. The fees would be collected by states and then transferred to the federal government.

The measure was introduced by Sam Graves, a Republican from Missouri, and Rick Larsen, a Democrat from Washington, both senior members of the United States House Committee on Transportation and Infrastructure.

Fees Would Increase Over Time

Under the proposal, the EV fee would not remain fixed permanently. Starting in 2029, the annual charge would rise by $5 every two years until it reaches a maximum of $150.

Plug-in hybrid owners would see the same $5 increase every two years, but their annual fee would be capped at $50. States would also be allowed to keep up to 1 percent of the money collected to cover administrative expenses.

Why EV Owners Could Be Charged

The proposal is designed to address a funding gap created by the shift away from gasoline and diesel vehicles. Traditional drivers contribute to federal infrastructure funding through fuel taxes, but EV owners do not pay those taxes when charging their vehicles.

The federal gas tax has remained unchanged for more than three decades. It currently stands at 18.4 cents per gallon of gasoline and 24.4 cents per gallon of diesel. Supporters of the new fee argue that EV and plug-in hybrid drivers should also contribute to road maintenance and infrastructure costs.

BUILD America 250 Act Covers More Than EV Fees

The EV and plug-in hybrid fee proposal is only one part of the massive transportation bill, which runs more than 1,000 pages. The legislation is designed as a five-year surface transportation reauthorization package covering roads, bridges, transit, rail, highway safety and motor carrier programs.

The bill also promises a major investment in America’s bridges and includes what is described as the first federal framework for autonomous commercial motor vehicles.

Autonomous School Buses Would Still Need Human Operators

Another notable section of the proposal focuses on autonomous vehicles. According to the source report, the bill would require a human operator to be inside any automated commercial motor vehicle carrying hazardous materials or primarily transporting minors.

That requirement would apply to autonomous school buses, meaning fully driverless operation would not be allowed in that specific use case under the proposed framework.

EV Fees Could Become A Bigger Political Issue

As EV adoption grows, lawmakers are increasingly looking for ways to replace lost fuel-tax revenue. The proposed $130 annual EV fee would mark a significant step toward making electric vehicle owners directly contribute to federal transportation funding.

However, the proposal may also face criticism from EV advocates, who could argue that new fees may discourage adoption at a time when the industry is still trying to expand the electric vehicle market.

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