A bipartisan House transportation bill introduced this week would levy a flat annual charge on electric vehicles and plug‑in hybrids. Owners of pure‑electric cars would pay $130 per year, while plug‑in hybrids face $35. The proposal adds a federal layer to the patchwork of state fees and follows last year’s repeal of the $7,500 EV purchase credit that hurt sales.

Republican Rep. Sam Graves, chair of the House Transportation and Infrastructure Committee, argues the fee ensures EV owners contribute their “fair share” to the Highway Trust Fund, which relies on gasoline and diesel taxes that have not risen since 1993. Democrat ranking member Rep. Rick Larsen says the amount is intended to be equitable, not punitive, and reflects a compromise between parties.

Auto industry groups, including the Zero Emission Transportation Association, contend the flat fee exceeds the average $73‑$89 federal fuel tax paid by gasoline drivers, effectively penalising buyers seeking lower operating costs. The bill also proposes ending the Carbon Reduction Program, cutting funding for EV chargers and other climate projects. With bipartisan backing, the measure faces an uncertain Senate vote but could reshape EV cost calculations for consumers.