The House of Representatives recently passed President Trump’s budget bill, which includes a range of controversial add-ons. One of them is an annual registration fee for EVs and hybrids that could add a couple hundred dollars to the cost of ownership.
Tucked into the “Big Beautiful Bill” is a requirement for an annual $100 hybrid registration fee and a $250 EV registration fee. Revenues generated from the charges will pad the Highway Trust Fund. Rep. Sam Graves, the Transportation and Infrastructure Committee’s chair, said, “The bill includes provisions from the Transportation and Infrastructure Committee to provide historic investments in the United States Coast Guard to strengthen our national and border security, as well as… ensuring that electric vehicles begin contributing to the Highway Trust Fund.”
The Highway Trust Fund’s revenues have declined as EVs and electrified vehicles become more popular. It’s backed by gas and diesel taxes, which have shrunk as more drivers opt for electric power.
That said, the budget bill faces an uncertain future in the Senate. Many republicans have expressed grave concerns over the legislation’s impacts, which extend to many other, much more important changes, such as cuts to Medicaid and food security programs. Senators could make a number of revisions to the bill before (and if) it passes, so some of the small provisions like the hybrid/EV registration fee could change or disappear completely before all is said and done.
[Images: Subaru, Honda, Kia]
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