U.S. Proposes Annual $130 Federal Road Tax for EV Owners

Electric-vehicle owners in the United States could soon see a new charge on their yearly registrations. Lawmakers in the U.S. House have introduced a bipartisan, five-year surface transportation omnibus, the BUILD America 250 Act. Within its more than 1,000 pages, Section 1129 would amend Chapter 1 of title 23 of the United States Code to establish a federal road-repair fee for clean energy vehicles.

If enacted, state motor vehicle departments would collect an annual $130 federal registration fee for battery-electric vehicles (BEVs) and $35 for certain plug-in hybrids (PHEVs).

The Trust Fund Deficit and the Parity Debate

The generated revenue would be directed to the federal Highway Trust Fund, which has historically relied on the federal gas tax to support national infrastructure repairs. Because the gas tax has been fixed at 18.4 cents per gallon (and 24.4 cents per gallon for diesel) since 1993, inflation and rising construction costs have weakened the fund, with projected insolvency by 2028.

Tesla and EV industry watcher Sawyer Merritt commented on X, noting:

"I think $130 is fair since over time there will be fewer gas vehicles on the road generating tax revenue.

Advocacy groups argue that the underlying comparisons are skewed. An average fuel-efficient gasoline vehicle contributes roughly $73 to $89 in federal gas taxes each year. Imposing a flat $130 fee on EVs would effectively charge zero-emission drivers close to double what a comparable gas car pays for the same road maintenance.

The True Cost of Ownership and Rising State Surcharges

The proposed federal road fee comes at a transitional moment for the U.S. EV market, where all-electric models account for about 5.5% to 6% of new car sales. It also follows after Congress eliminated the popular $7,500 federal tax credit for new EV purchases last year, signaling a shift from adoption incentives to added costs.

While Tesla has historically navigated corporate accounting to reduce its own federal tax burden to $0, everyday drivers will not have the same flexibility. A $130 federal fee directly reduces the annual operational savings that encourage switching to electric propulsion.

EV owners are also encountering a growing set of state-level surcharges. More than 40 states already assess annual registration fees to compensate for reduced fuel-tax revenue. In North Carolina, EV owners must pay an additional $214.50 at renewal. Adding a federal fee on top could push total annual registration costs past $300 for millions of drivers.

Built-In Fee Escalators and Enforcement

According to the bill text, the initial fee is a starting point. Beginning in 2029, the Federal Highway Administration (FHWA) would be required to increase the registration fees by $5 every two years. These adjustments would continue until reaching a legislative cap of $150 per year for covered electric vehicles and $50 per year for plug-in hybrids.

The fees are slated to end on October 1, 2036. The House Transportation and Infrastructure Committee has scheduled a formal markup for Thursday, May 21, 2026. As Congress works to approve a highway reauthorization before the current funding law expires on September 30, the EV community is watching to see whether alternatives — such as a Vehicle Miles Traveled (VMT) approach or a per‑kWh framework — are considered instead of a flat-rate fee.