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Home » New EV Fee Proposal Could Shrink Drivers’ Gas Savings. Here’s Why
New EV Fee Proposal Could Shrink Drivers’ Gas Savings. Here’s Why
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New EV Fee Proposal Could Shrink Drivers’ Gas Savings. Here’s Why

News RoomBy News RoomMarch 18, 20261 ViewsNo Comments

Electric car owners could be forced to pay as much as $250 annually under a new fee that is being proposed by the chairman of the U.S. House Transportation and Infrastructure Committee.

U.S. Rep. Sam Graves, who is a Kansas Republican, is proposing to include the fee in a new five-year surface transportation funding bill that Congress is considering. The current version of the funding measure is set to expire in September.

Graves’ office told USA TODAY that the Kansas Republican initially proposed the EV fee during debate about a massive tax-and-spending bill that was approved by Congress last year. The proposal was ultimately removed from the 2025 bill, but Graves’ office confirmed he is in favor of adding the EV fee.

A Graves spokesman said the EV fee would “help bolster the Highway Trust Fund and better ensure that all road users are paying their fair share.”

The federal government currently takes 18.4 cents per gallon off every U.S. gas purchase to help pay for road and transit construction projects, and most states also tack on their own fees. EV drivers have traditionally been able to escape paying anything that goes into the federal government’s coffers for road projects.

The comments come as consumer interest in EVs has jumped as the average price of gas rose to $3.84 per gallon on March 18, according to the AAA Auto Club.

With that in mind, the USA TODAY Cars team took a look at why Congress is considering the new fee for EV drivers and what it would mean for shoppers and owners.

What Would the New Fee Mean for EV Owners?

Owners of electric models saved an average of about $8,811 on ownership and maintenance compared to the best-selling traditional cars in their class over the length of time it takes them to drive the car 200,000 miles, according to Consumer Reports.

A driver who opts for a new or used EV could save $2,200 annually on gas, according to the U.S. Department of Energy. Even hybrid drivers can save $1,500 on gas annually, according to the agency.

A new $250 annual fee for EV drivers would eat into those savings. EV supporters have argued that annual fees would add significant financial burdens to electric vehicle owners who are already typically driving more expensive cars that are better for the environment.

When state lawmakers in South Carolina were considering a new user fee for EV owners of 4.5 cents per kilowatt-hour on electricity consumed at publicly accessible charging stations, the Electrification Coalition, which lobbies for EV-friendly policies, said the state’s proposal “imposes significant additional costs on EV drivers without increasing the state gasoline tax.”

“Adding a $400 biennial fee and a new tax on charging would make South Carolina one of the most expensive states to drive electric, harming jobs and consumers,” Electrification Coalition Executive Director Ben Prochazka said in a February 2026 statement.

Why Is Congress Looking to Raise Money From EV Owners?

Lawmakers have been looking for ways to close a growing gap in federal gas tax revenue that has expanded as cars have become more fuel efficient and more drivers have opted for EVs and hybrids.

The federal government collects 18.4 cents per gallon from every U.S. gas purchase and the money is placed in the U.S. Department of Transportation’s Highway Trust Fund that is used to send money to states to help pay for road and transit construction projects. Most states also collect their own gas taxes to help pay for local road projects.

The federal gas tax hasn’t been increased since 1993, and it only brings in about $40 billion per year at its current level, according to the Tax Policy Center. The federal government traditionally spends about $60 billion on transportation projects, and infrastructure advocates say the amount is barely enough to maintain the nation’s roads and transit systems.

This article originally appeared on USA TODAY: New EV fee proposal could shrink drivers’ gas savings. Here’s why

Reporting by Keith Laing, USA TODAY

USA TODAY Network via Reuters Connect

Read the full article here

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