Republicans want to tax EV drivers $200/year in new transport bill

Internal combustion engine drivers would pay only $20 a year, and only from 2030.

Apr 30, 2025 - 14:47
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Republicans want to tax EV drivers $200/year in new transport bill

WASHINGTON—Here in DC, the House Transportation and Infrastructure Committee will meet today to discuss its proposed budget legislation, and there's a doozy in there for drivers of electric vehicles and hybrids. As part of the Republican Party's ongoing war against science and the environment under President Trump, committee chairperson Sam Graves (R-Mo.) has included some new annual fees that will cost all drivers some, but some drivers more.

The Republicans plan to use the budget reconciliation process to pass this legislation, which is an expedited process that removes some of the US Senate's ability to stall. They're proposing a new annual federal motor vehicle registration fee, which state DMVs would have to collect and pass back to the federal government.

If it passes, all battery EVs would be subject to a new $200 tax. Hybrids—defined as a vehicle that is propelled by both an electric motor and an internal combustion engine or other power source (which would include fuel cell EVs)—will pay $100. But someone who commutes 90 miles a day in a particulate-belching Ford F-350 Duramax diesel pickup truck gets away with a mere $20 a year, and only from October 1, 2030; until then they get to drive for free.

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