By David Shepardson
WASHINGTON, March 17 (Reuters) – The chair of the House Transportation and Infrastructure Committee wants to collect funds from electric vehicles to help pay for U.S. highway repairs as part of a surface transportation bill.
Representative Sam Graves, a Republican, said he plans to take up a multi-year bill in early April. Last year, House Republicans proposed a new $250 annual fee on EVs and $100 for hybrid EVs but it was not included in a massive tax and spending bill. The current five-year surface transportation law expires on September 30.
“We would like to get money from EVs,” Graves said at a U.S. Chamber of Commerce infrastructure event, saying he expects the five-year bill to include $500 billion to $550 billion in funding for highways and bridges.
Some states charge fees for EVs to cover road repair costs. Congress for the past three decades has opted not to hike fuel taxes to pay for rising road repair costs. Some Republican senators in February 2025 proposed a $1,000 tax on EVs for road repair costs.
Most revenue for federally funded road repairs is collected through diesel and gasoline taxes, which EVs do not pay.
Last year, the Electrification Coalition, an EV advocacy group, argued a $250 fee for EVs was unfair since an average gas-powered vehicle pays just $88 yearly in federal gas taxes.
Since 2008, more than $275 billion – including $118 billion from the 2021 infrastructure law – has been shifted from the general fund to pay for road repairs.
The Trump administration has taken a series of steps to disincentivize EV sales, including repealing a $7,500 EV tax credit last year.
Given the November congressional election, some lawmakers say it will be challenging to reach a deal by September 30 on funding.
(Reporting by David Shepardson. Editing by Chizu Nomiyama and Mark Potter)
