Senate GOP alleges ‘perhaps unlawful subsidy scheme’ for EVs

By Kelsey Brugger | 05/30/2024 04:05 PM EDT

The lawmakers say electric vehicles shouldn’t be eligible for a fuel credit.

Sen. Rick Scott (R-Fla.).

Sen. Rick Scott (R-Fla.) outside former President Donald Trump's criminal trial in New York this month. Scott is leading a letter questioning a recently adopted fuel formula. Joseph Frederick/AP

A group of Republican senators are calling on the Government Accountability Office to investigate what they say is a “perhaps unlawful subsidy scheme” to drive the proliferation of electric vehicles.

Led by Sen. Rick Scott (R-Fla.), the lawmakers are asking the GAO a host of questions about the legality of the Department of Energy’s new formulas translating the power consumption of an electric car into gasoline use, or the miles per gallon equivalent.

They claimed the department’s latest number-crunching amounted to “fake math” that generated a “hidden subsidy.” According to their calculations, the amount “likely far exceeds the $7,500 federal tax credit” for EVs.


The Republicans argue in their letter: “Despite mandates to purchase EVs and the massive amount of federal support for EV production, charging, and purchases, consumers are not buying EVs at a fast enough rate to match the production levels being dictated by the CAFE standards,” referring to the corporate average fuel economy (CAFE) standards.