EV fans fear new fee from Congress will drive off gas-weary buyers

• Congress is considering a new bill that would add an annual fee for electric and plug-in hybrid vehicle owners.
• The proposed fee aims to make up for lost gas tax revenue used to fund road and transit projects.
• EV supporters are concerned the fee will discourage people from buying electric cars, especially with high gas prices.

Electric car supporters are concerned a new fee that would force EV owners to pay as much as $150 annually to help pay for roads will dampen demand for the plug-in products at a time when gas prices have prompted some car shoppers to consider going electric.

The new proposed EV fee that will start at $135 annually beginning in October 2026 if a new bipartisan draft of a five-year surface transportation funding bill that Congress is considering becomes law. Under the proposed legislation, which has been dubbed the BUILD America 250 Act, the fee can be increased by $5 each year until it hits a max of $150 annually. Plug-in hybrid owners would be hit with a $35 fee starting in October that can be increased to as much as $50 by the end of the legislation.

"The proposed fee would charge an unfair premium on EV drivers, at a time when all Americans are looking for ways to save money," Albert Gore, executive director of the Washington, DC-based Zero Emission Transportation Association, which lobbies for EV-friendly policies, said in a statement. "This is particularly concerning as the EV fee will increase to $150 by 2035 – nearly double what gas car drivers would pay in a year."

The EV fee proposal comes as drivers are reeling from gas prices that reached a national average of $4.51 per gallon on Monday, May 18, according to the AAA Auto Club. It also comes as recent polling shows that even as most Americans said they were trying to cut expenses, 15% said they were now considering buying an electric car in light of the current high gas prices, according to a new poll released by ABC News, The Washington Post, and Ipsos.

Why is Congress considering adding an EV fee?

The federal government currently collects 18.4 cents per gallon on every U.S. gasoline purchase to help pay for road and transit construction projects, and most states also tack on their own fees. EV drivers have traditionally avoided paying anything into the federal government’s road fund.

The money goes into the U.S. Department of Transportation’s Highway Trust Fund, which is then distributed to states to help pay for road and transit construction projects. As cars have become more fuel-efficient and more drivers have opted for EVs and hybrids, less money per mile driven has been collected despite increased use of roads. Lawmakers have been looking for ways to close that growing gap in federal gas‑tax revenue.

The federal gas tax hasn't been increased since 1993, and it brings in about $40 billion per year at its current level, according to the Tax Policy Center. And President Donald Trump and some lawmakers in Congress have recently proposed suspending the federal gas tax as the average price of gas hovers around $4.50, according to the AAA Auto Club. The federal government typically 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. Most states also levy their own gas taxes to fund local road projects.

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 with the best-selling traditional cars in their cases 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 $135 annual fee for EV drivers would eat into those savings. EV supporters have argued that annual fees would add significant financial burdens to owners of electric vehicles who are already typically driving more expensive cars that are better for the environment.

The potential for Congress to add new EV fees comes as new electric car sales are falling, but used EV sales are picking up. Carmakers sold 82,629 new electric vehicles and 42,924 used EVs in March 2026, according to Cox Automotive.

The group said March's new EV sales were down 24.7% from March 2025, but they were up 20.2% from February 2026. Used EV sales increased 27.7% from March 2025, and they also jumped 53.9% from February 2025.

What are people saying about the proposed EV fee?

EV supporters are condemning the idea of adding a new fee for electric car drivers.

“With Americans demanding more affordable transportation options as gasoline tops $4.50 a gallon, this bill would impose a new fee on electric vehicles and plug-in hybrids, while slashing investments in new EV chargers," Shruti Vaidyanathan, director of federal and state transportation advocacy at the Natural Resources Defense Council, said in a statement.

Katherine García, director of the Sierra Club’s Clean Transportation for All Campaign, said in a statement that the proposed EV fee, which is included in the highway bill draft, is "an irresponsible tax for EV and plug-in hybrid drivers that will fail at meaningfully closing the Highway Trust Fund shortfall."

Gore, the ZETA president, agreed, saying “charging a punitive fee on Americans who choose to drive electric vehicles goes against the idea of drivers paying their fair share based on their driving habits, as drivers will pay based on their drivetrain of choice and not their use of public infrastructure."

"It would also discourage drivers from choosing vehicles that are among the most American-made cars on the road − and the domestic jobs and supply chain investments these products represent," Gore said.