US lawmakers push new EV tax to close $275bn road funding gap

U.S. lawmakers are moving to make electric vehicle owners pay more for the roads they use, as funding gaps for highway repairs continue to widen.

The proposal, led by House Transportation Committee Chair Sam Graves, would introduce new EV tax measures as part of a broader federal transportation bill expected in April. Lawmakers are targeting up to $550 billion in infrastructure funding for highways and bridges.

Rising Highway Repair Costs Drive Policy Shift

For decades, the U.S. has relied on fuel taxes to fund highway repair costs. But electric vehicles do not use gasoline, creating a growing revenue shortfall. Since 2008, over $275 billion has been transferred from the general fund to cover these expenses.

In 2025 alone, the U.S. spent about $140.2 billion on highway and street construction at state and local levels. That’s just slightly below 2024’s record $141.3 billion, the highest in over 15 years.

To address this, House Republicans previously proposed a $250 annual fee for EVs and $100 for hybrids. Some senators have gone further, suggesting a $1,000 charge.

Fairness Debate Around Electric Vehicle Policy

The proposed fees have sparked debate. Advocacy groups argue the charges are disproportionate. According to the Electrification Coalition, the average gas-powered vehicle pays just $88 per year in federal fuel taxes.

At the same time, several U.S. states have already implemented similar fees, signaling a broader shift in electric vehicle policy.

Political Uncertainty Ahead of Deadline

The current five-year transportation law expires on September 30, putting pressure on Congress to act. However, with elections approaching, analysts say reaching a deal may prove difficult.

The proposal also comes amid broader efforts to scale back EV incentives, including the repeal of a $7,500 tax credit last year.

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