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Congress Proposes $130 Annual Fee for Electric Vehicles

Wall Street Journal US Business •
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Congress is weighing a bill that would impose the first nationwide annual fee on electric-vehicle owners to help fund highway maintenance. The bipartisan legislation, sponsored by Representatives Sam Graves (R., Mo.) and Rick Larsen (D., Wa.), would charge EV owners $130 annually, climbing to $150 over time.

The proposal addresses a growing concern: the gasoline tax currently generates roughly $30 billion annually for road repairs, but EV drivers contribute nothing through fuel purchases. Plug-in hybrid owners would also face fees starting at $35 per year, rising to $50.

EV advocates argue the proposed fees are disproportionate, especially as electric-vehicle adoption remains relatively low and the industry still needs incentives to grow. The debate reflects broader questions about how to fund infrastructure as the transportation sector electrifies.