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EV drivers will pay $130 a year under Congress' 2026 transportation bill

EV drivers will pay $130 a year under Congress' 2026 transportation bill

Summary

Congress is considering a transportation bill that includes a new annual fee for electric vehicle (EV) owners. Starting in 2026, EV owners would pay $130 per year, increasing to $150 by 2029, while plug-in hybrid owners would pay lower fees starting at $35.

Key Facts

  • The bill is called the “Building Unrivaled Infrastructure and Long-term Development for America’s 250th Act.”
  • EV owners would pay $130 annually starting in 2026, increasing by $5 each year until it reaches $150.
  • Plug-in hybrid electric vehicles (PHEVs) would pay $35 annually beginning in 2026, rising to $50 by 2029.
  • If states don’t collect this fee, the federal government will reduce their highway funding by 125% of the owed amount.
  • The fee aims to make EV and PHEV owners contribute to road maintenance since they don’t pay gas taxes.
  • EVs currently make up about 3% of the total vehicle fleet in the US.
  • The federal gas tax has not increased since 1993 and is currently 18.4 cents per gallon.
  • Some critics say the fee might discourage EV use and reduce funding for EV charging infrastructure, especially in rural areas.
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