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EVs Face New Highway User Charge: What It Means for Drivers and States

Wall Street Journal US Business •
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Electric and hybrid vehicles will soon pay a new highway user charge to cover road upkeep, a proposal unveiled by the House Transportation and Infrastructure Committee. The fee would replace the fuel tax that fuels every gasoline vehicle, restoring the users‑pay, users‑say model that has guided U.S. highways for decades.

The revenue will funnel directly into the Federal Highway Trust Fund, mirroring the flow of gasoline and diesel taxes. Local Department of Motor Vehicles offices are poised to collect the fees, leveraging their existing relationship with every vehicle owner.

Proponents argue that the charge is a fair return for cars that currently avoid fuel taxes, while critics worry about the administrative burden. The debate highlights a broader push to devolve federal highway programs to the states—an effort that could accelerate before Social Security faces insolvency in six to seven years.

This shift signals a significant change in how road maintenance will be funded, affecting every driver and reshaping state‑federal fiscal dynamics.