Electric vehicle owners could soon face a new annual federal fee under a bipartisan highway bill in Congress — a proposal supporters have said would help pay for roads, but one that could also make cleaner cars more expensive to own for families trying to cut fuel costs and reduce tailpipe pollution.

What's happening?

According to a report from USA Today, leaders of the U.S. House Transportation and Infrastructure Committee have released a bipartisan draft of a five-year transportation funding bill creating a new annual fee for electric vehicle and plug-in hybrid owners.

EV owners would be charged $135 a year starting in October 2026, with the amount rising by $5 annually until it reaches $150. Plug-in hybrid owners would start at $35 per year, with the fee climbing to $50 by 2031.

The proposal is part of the committee's draft BUILD America 250 Act, now under consideration as the current highway funding law nears its September expiration.

Supporters have said the measure addresses a growing problem: Drivers of gas-powered vehicles help fund the federal Highway Trust Fund through the 18.4-cent-per-gallon federal gas tax, while EV owners generally do not. 

Committee Chair Rep. Sam Graves of Missouri said the fee would ensure EV owners begin paying their "fair share" for road use. Rep. Rick Larsen of Washington, the committee's top Democrat, described the broader agreement as an example of bipartisan compromise.

If the proposal becomes law, the fee would be collected when drivers register their vehicles each year. Unlike mileage-based tax ideas that have raised privacy concerns in the past, this plan would not require drivers to report how far they travel.

The larger funding issue is real. The federal gas tax has stayed unchanged since 1993, and improved fuel economy — along with more drivers moving into EVs and hybrids — means the trust fund gets less revenue for each mile traveled. 

The gas tax brings in about $40 billion a year even though the federal government usually spends around $60 billion on transportation projects.

Why is the proposed EV fee important?

The U.S. Department of Energy said a driver who switches to a new or used EV can save about $2,200 a year on gas. Hybrid drivers can save about $1,500 annually, USA Today noted. 

Consumer Reports found that EV owners can save thousands of dollars on ownership and maintenance over a vehicle's lifetime compared with many gas-powered models.

A new federal fee would not wipe out those savings, but it would reduce them — especially for households already stretching their budgets to afford a cleaner vehicle. Higher upfront and ongoing costs can slow EV adoption, keeping more gas-burning cars on the road longer.

That has real consequences for communities. When it becomes harder to move away from gasoline, families remain exposed to unpredictable fuel prices, and neighborhoods near busy roads continue to deal with more exhaust pollution. 

The proposal also raises a fairness question. A flat annual fee means someone who drives very little could pay the same amount as someone who uses the roads every day. Some advocates have argued that if lawmakers want to modernize road funding, they should do it in a way that better reflects actual road use without discouraging cleaner choices.

In other words, the bill aims to solve a legitimate funding shortfall, but the way it does so could create new barriers to a future with lower transportation costs, cleaner air, and less dependence on gas.

What's being done about the proposed EV fee?

For now, the fee remains just a proposal. Lawmakers will continue debating the transportation package before the current funding measure expires, which means the details could still change.

One possible path forward would be to update road funding without singling out cleaner vehicles in a way that slows progress. That could include broader transportation finance reforms, changes to long-stagnant gas-tax policy, or road-use systems with stronger privacy protections and a closer connection to how much drivers actually use public roads.

For drivers, the broader picture is still important. Even with added fees, EVs often remain cheaper to operate than gas-powered cars over time.

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