Republicans propose fees on EVs, other passenger vehicles to fund transportation programs

House Republicans are proposing placing fees on electric vehicles to fund Transportation Department programs as part of the tax reform bill up for consideration.

This week, Rep. Sam Graves (R-Mo.), who leads the House Transportation and Infrastructure Committee, will take up the proposal to boost funding in various transportation sectors and add a new $200 electric vehicle fee.

Under the proposal, the Federal Highway Administration administrator would impose registration fees for the owners of various vehicles.

Electric vehicle owners would pay $200, hybrid vehicle owners would pay $100, and a $20 annual federal registration fee for vehicles that aren’t electric or hybrid.

The electric vehicle fee would be collected because most federally funded road repairs are collected through gas taxes, which electric vehicle drivers don’t pay.

The proposal comes just months after Senate Republicans proposed a bill to kill the Biden-era electric vehicle tax credit and add a tax payment for road repairs.

The GOP lawmakers say it’s “only fair” that electric vehicle owners help pay into the Highway Trust Fund and upkeep infrastructure across the country.

If House Republicans adopt the new proposal, it would raise at least $50 billion over a decade for road repairs, Reuters reported.

More than $275 billion has been shifted from the general budget to fund repairs since 2008, the outlet noted.

Most states have already begun implementing feeds for people who own electric vehicles, but the federal proposal may be more costly than what gas vehicles pay.

The Energy Information Administration states that the federal gas tax is about 18 cents per gallon. For an electric vehicle to meet the $200 proposal, a driver would have to pay taxes on more than 1,000 gallons of gas, which is estimated to be just under 500 gallons annually for a gas car.