Close Menu
Fin Street NewsFin Street News
  • Home
  • Business
  • Finance
    • Banking
    • Stocks
    • Commodities & Futures
    • ETFs & Mutual Funds
    • Funds
    • Currencies
    • Crypto
  • Markets
  • Investing
  • Personal Finance
    • Loans
    • Credit Cards
    • Dept Management
    • Retirement
    • Mortgages
    • Saving
    • Taxes
  • Fintech
  • More Articles

Subscribe to Updates

Get the latest finance and business news and updates directly to your inbox.

Trending
Taylor Frankie Paul’s ‘Bachelorette’ season is already mired in controversy. Here’s what to know.

Taylor Frankie Paul’s ‘Bachelorette’ season is already mired in controversy. Here’s what to know.

March 18, 2026
The career rise of Bob Iger, from local weatherman to Disney’s repeat CEO

The career rise of Bob Iger, from local weatherman to Disney’s repeat CEO

March 18, 2026
Wendy’s Celebrating March Madness With Free Frosty, Fries in April

Wendy’s Celebrating March Madness With Free Frosty, Fries in April

March 18, 2026
When Will Car Interest Rates Drop?

When Will Car Interest Rates Drop?

March 18, 2026
I bought my grandparents’ house and lived next to my mom. When she decided to move, it was hard on both of us.

I bought my grandparents’ house and lived next to my mom. When she decided to move, it was hard on both of us.

March 18, 2026
Facebook X (Twitter) Instagram
  • Privacy Policy
  • Terms of use
  • Press Release
  • Advertise
  • Contact
March 18, 2026 5:22 pm EDT
|
Facebook X (Twitter) Instagram
  Market Data
Fin Street NewsFin Street News
Newsletter Login
  • Home
  • Business
  • Finance
    • Banking
    • Stocks
    • Commodities & Futures
    • ETFs & Mutual Funds
    • Funds
    • Currencies
    • Crypto
  • Markets
  • Investing
  • Personal Finance
    • Loans
    • Credit Cards
    • Dept Management
    • Retirement
    • Mortgages
    • Saving
    • Taxes
  • Fintech
  • More Articles
Fin Street NewsFin Street News
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
Saving

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

Share. Facebook Twitter LinkedIn Telegram WhatsApp Email

Keep Reading

Wendy’s Celebrating March Madness With Free Frosty, Fries in April

Wendy’s Celebrating March Madness With Free Frosty, Fries in April

Dairy Queen’s Free Cone Day Is March 19. How to Get One

Dairy Queen’s Free Cone Day Is March 19. How to Get One

5 EV Deals Shoppers Can Take Advantage of as Toyota Cuts Prices

5 EV Deals Shoppers Can Take Advantage of as Toyota Cuts Prices

This Brand Makes the Most Reliable Cars for 2026, According to J.D. Power

This Brand Makes the Most Reliable Cars for 2026, According to J.D. Power

5 Ways AI Is Going to Affect America’s Seniors, Whether They Like It or Not

5 Ways AI Is Going to Affect America’s Seniors, Whether They Like It or Not

The Strange Insurance Paradox of the 21st Century

The Strange Insurance Paradox of the 21st Century

These 5 States Still Penalize You if You Don’t Have Health Insurance

These 5 States Still Penalize You if You Don’t Have Health Insurance

Think Walmart Has the Cheapest Groceries? These 6 Stores Are Actually Cheaper

Think Walmart Has the Cheapest Groceries? These 6 Stores Are Actually Cheaper

Another EV Bites the Dust. Volvo Discontinues 2026 EX30 in the U.S.

Another EV Bites the Dust. Volvo Discontinues 2026 EX30 in the U.S.

Add A Comment
Leave A Reply Cancel Reply

Editors Picks

The career rise of Bob Iger, from local weatherman to Disney’s repeat CEO

The career rise of Bob Iger, from local weatherman to Disney’s repeat CEO

March 18, 2026
Wendy’s Celebrating March Madness With Free Frosty, Fries in April

Wendy’s Celebrating March Madness With Free Frosty, Fries in April

March 18, 2026
When Will Car Interest Rates Drop?

When Will Car Interest Rates Drop?

March 18, 2026
I bought my grandparents’ house and lived next to my mom. When she decided to move, it was hard on both of us.

I bought my grandparents’ house and lived next to my mom. When she decided to move, it was hard on both of us.

March 18, 2026
These are the world’s best airports as rated by travelers. Asia dominates, but the US is nowhere to be seen.

These are the world’s best airports as rated by travelers. Asia dominates, but the US is nowhere to be seen.

March 18, 2026

Latest News

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

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

March 18, 2026
How the Federal Reserve Impacts Personal Loans

How the Federal Reserve Impacts Personal Loans

March 18, 2026
As a single woman with partnered friends, solo trips feel like my only choice

As a single woman with partnered friends, solo trips feel like my only choice

March 18, 2026

Subscribe to News

Get the latest finance and business news and updates directly to your inbox.

Advertisement
Demo
Facebook X (Twitter) Pinterest TikTok Instagram
2026 © Prices.com LLC. All Rights Reserved.
  • Privacy Policy
  • Terms
  • For Advertisers
  • Contact

Type above and press Enter to search. Press Esc to cancel.