Republican lawmakers are proposing a $250 annual federal tax on electric vehicles and $100 for hybrids as part of a transportation bill, arguing that EV drivers don't contribute to highway funding through gas taxes. This marks the second attempt by House Transportation Committee Chair Sam Graves to implement such a tax after a previous proposal failed. The move comes amid declining EV sales, with only 5.1% of new vehicles sold in January being electric compared to 8.3% a year earlier.
Background
Federal highway infrastructure in the US is primarily funded through gasoline taxes paid at the pump. Electric vehicles don't use gasoline and therefore don't contribute to this funding mechanism, creating a budget shortfall as EV adoption increases.
- Source
- Ars Technica
- Published
- Mar 24, 2026 at 01:29 AM
- Score
- 6.0 / 10