Congress starts approval of EV tax plan for funding of highway repairs

OK Energy Today May 1, 2025

Congress wants to follow Oklahoma in taxing EV operators to make them pay for the highway repairs since federal funding comes from gasoline and diesel fuel taxes.

A U.S. House committee led by Republicans approved a plan to create a $250 annual fee on electric cars but at the same time dropped a $20 federal yearly registration fee on all vehicles starting in 2031. The $20 fee was proposed to fund road repairs as part of a tax reform bill.

The House Transportation and Infrastructure Committee voted 36-30 to approve Rep. Sam Graves’ proposal. No Oklahoma members of the House sit on the committee. His plan also included a $100 fee on hybrids.

The highway trust fund faces a $142 billion shortfall over five years. “The system for funding our federal surface transportation is broken,” Graves said, according to Reuters.

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