Overview
- The House Transportation and Infrastructure Committee advanced a reconciliation provision imposing a $250 annual fee on electric vehicles and a $100 fee on hybrid vehicles.
- An initial $20 universal fee for all passenger vehicles was removed from the proposal following internal concerns among Republicans.
- The fees aim to address declining gas tax revenues that fund the Highway Trust Fund, which has faced shortfalls due to increased vehicle efficiency and EV adoption.
- The committee projects the new fees will raise $50 billion over the next decade for road repairs and infrastructure projects.
- The measure now awaits full House consideration, with its fate uncertain as debates continue over its fairness and potential impact on EV adoption.