Republicans in the U.S. House of Representatives advanced a reform proposed by Rep. Sam Graves (R-MO), which tabled a $250 annual fee on all EVs.
What Happened: The House Transportation and Infrastructure Committee advanced the proposal, but dropped the $20 yearly fee charged to all owners, including Internal Combustion Engine or ICE car owners, from the proposal in the U.S., Reuters reported on Thursday.
The committee approved the bill following a 36-30 vote. The bill also includes a $100 fee on Hybrid vehicles. The report suggests that this fee would save up to $50 billion over the next decade.
The fees would go to the Highway Trust Fund, which usually collects fees through gasoline taxes that EV owners do not pay. “For far too long, EVs have operated on our nation’s roads without paying into the system. It’s time these roadway users pay their share for the use of the road.” Graves said to the committee.
Why It Matters: The decision to impose a $250 fee on EV owners comes as the sector is seeing increased adoption among drivers in the U.S. EV sales were up 10.6% in Q1 2025, when compared to the last quarter.
The $250 fee on EVs coincides with the Trump administration’s decision to reportedly ease some of the tariffs imposed on the auto industry, which could provide some relief to the sector in the U.S.
As tariffs cast uncertainty over the sector, EV manufacturers like Tesla Inc. TSLA, which is the leader in the segment, are releasing cheaper models to boost sales.
Check out more of Benzinga’s Future Of Mobility coverage by following this link.
Read Next:
Image Via Shutterstock
Market News and Data brought to you by Benzinga APIs
© 2025 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
