GOP abandons broad car fee but raises proposed tax on EVs

By Timothy Cama | 04/30/2025 01:40 PM EDT

The change follows Republican resistance to a federal fee on all cars.

Rep. Sam Graves (R-Mo.).

House Transportation and Infrastructure Chair Sam Graves (R-Mo.) has made a U-turn since Tuesday on proposed car fees. Mark Schiefelbein/AP

House Republicans are abandoning their proposed $20 national fee for most vehicles but boosting a proposed annual fee for electric cars to $250. A levy on hybrids would remain the same.

The charges are part of the House Transportation and Infrastructure Committee’s piece of the Republicans’ party-line tax, defense, energy and border package up for markup Wednesday. The party is using the budget reconciliation process to bypass the Senate filibuster.

The new fees are supposed to help shore up the Highway Trust Fund, the pot of money from fuel taxes meant to be the main federal source of highway funding.

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But the broad yearly $20 fee — which would have gone into effect in 2031 — raised alarm among Republicans after the committee released its text Tuesday.

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