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US House Republicans propose dropping $20 vehicle registration fee, seek EV fee of $250
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US House Republicans propose dropping $20 vehicle registration fee, seek EV fee of $250
May 25, 2025 9:53 PM

WASHINGTON, April 30 (Reuters) - U.S. House Republicans

will propose dropping a $20 federal annual registration fee on

all vehicles starting in 2031 to fund road repairs and will seek

a new $250 annual fee on electric cars as part of a tax reform

bill under consideration.

The House Transportation and Infrastructure Committee on

Wednesday will take up the proposal from Representative Sam

Graves, who heads the panel. As a result the committee has

shrunk its proposed funding for air traffic control

infrastructure from $15 billion to $12.5 billion, a committee

spokesperson said.

The bill also proposes a $100 fee on hybrids and had

been projected to raise at least $50 billion over 10 years for

highway repairs. The hybrid fee will not change.

Some Republicans had criticized the proposed $20 fee on

all vehicles.

Most revenue for federally funded road repairs is

collected through diesel and gasoline taxes, which EV drivers do

not pay.

Some states charge fees for electric vehicles to cover

road repair costs. Congress for the past three decades has opted

not to hike fuel taxes to pay for rising road repair costs. Some

Republican senators in February proposed a

$1,000 tax on EVs for road repair costs

.

The proposal includes $12.5 billion in new funding

through 2029 for replacing aging Federal Aviation Administration

facilities including air traffic control towers, radar systems

and telecommunications infrastructure, and air traffic

controller hiring.

A persistent shortage of controllers has delayed flights and

at many facilities controllers are working mandatory overtime

and six-day weeks. The FAA is about 3,500 air traffic

controllers short of targeted staffing levels.

A quarter of all FAA facilities are at least 50 years

old and aging systems have repeatedly sparked delays, including

major issues at Newark on Monday

.

Transportation Secretary Sean Duffy plans to ask Congress

for tens of billions of dollars for a multi-year effort to

revamp FAA air traffic control infrastructure and boost hiring.

The January 29 collision between an Army helicopter and an

American Airlines ( AAL ) plane that killed 67 people and other

recent safety incidents have sparked calls for reform.

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