GOP looking again at imposing a federal fee for electric cars

By Chris Marquette | 08/11/2025 11:57 AM EDT

Republicans in both chambers are exploring creating a new fee on EVs — the first significant expansion of revenue for infrastructure spending since 1993.

Tesla vehicles line a parking area at the company's Fremont, California, factory.

Tesla vehicles line a parking area at the company's Fremont, California, factory on Aug. 5. Noah Berger/AP

Republicans in both chambers are looking to revive the idea of creating the first-ever annual federal fee for electric vehicles — despite the political uproar generated by a broader car fee proposed in a draft of the GOP’s megalaw.

The fee would help address — but not completely close — the country’s infrastructure spending deficit, offering the Highway Trust Fund its first significant revenue expansion in decades. But getting it through Congress will be a challenge.

House Transportation Chair Sam Graves (R-Mo.) generated a bipartisan backlash this spring when he proposed annual registration fees — $250 for electric vehicles, $100 for hybrids and $20 for all other vehicles — in the initial House version of the GOP’s megabill (H.R. 1). He almost immediately had to strip out the $20 fee, and the other fees died in the Senate before the bill was signed into law.

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But Graves wants to resurrect some version of that fee in the next surface transportation bill, which needs to be reauthorized by September 2026. The exact fee structure is far from determined, though it’s clear that any new fee for vehicles that run purely on gasoline is not politically viable.

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