House Republicans propose $250 annual fee on electric cars

Published 30/04/2025, 12:48
© Reuters.

Investing.com -- U.S. House Republicans have revised a proposed tax reform bill that would introduce a new annual fee on electric vehicles. The previous proposal, which suggested a $20 federal annual registration fee on all vehicles starting in 2031 to fund road repairs, has been dropped. Instead, the Republicans are now proposing a $250 annual fee on electric cars.

The proposal comes from Representative Sam Graves, who is the head of the House Transportation and Infrastructure Committee. This committee is set to review the proposal on Wednesday. As a direct result of this change in the proposed fee structure, the committee has had to reduce its proposed funding for air traffic control infrastructure. The initial funding proposal was set at $15 billion, but this has now been reduced to $12.5 billion.

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