New EV fees won’t fix highway funding problems — and could ding transit

By Mike Lee | 05/23/2025 06:36 AM EDT

The Republicans’ budget reconciliation package includes new fees on electric vehicles and hybrids.

Reps. Sam Graves (R-Mo.) and Rick Larsen (D-Wash.).

House Transportation and Infrastructure Chair Sam Graves (R-Mo.) and ranking member Rick Larsen (D-Wash.) on Capitol Hill. Graves is behind proposed new fees on electric and hybrid cars. Alex Wong/Getty Images

Electric vehicle and hybrid car fees included in the Republicans’ sprawling party-line bill would be the first new revenue dedicated to the Highway Trust Fund in 30 years.

But there’s a catch, experts and lawmakers say. The fees would go only part of the way toward closing the fund’s massive spending gap.

And, as currently written, the legislation would direct the money only to highway projects, to the exclusion of transit. Historically, 80 percent of the fund’s money has gone to highways and 20 percent to transit.

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Republicans — and the construction industry — are optimistic about securing a long-term solution to pay for the nation’s aging roads. But public transportation advocates and some Democrats are worried that buses, rail and ferries will be left at the station.

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