US lawmakers propose road fee for EVs

House lawmakers in the United States (US) have proposed bipartisan legislation that would require electric vehicles (EVs) to pay a R2 227 ($130) fee annually for road repairs, and R578 ($35) for some plug-in hybrid models, according to Reuters.

26 EV Tax1

The House is working on a five-year highway reauthorisation bill that would authorise $580 billion ahead of the current law expiration on 30 September. Most revenue for federally funded road repairs is collected through diesel and petrol taxes, which EVs do not pay.

The law would require the fees to be increased by R83 ($5) per year starting in 2029, up to a total of R2 475 ($150) for EVs and R825 ($50) for plug-in vehicles.

The US House Transportation and Infrastructure Committee is expected to take up the bill on Thursday, introduced by the panel's Republican chair, Sam Graves, and the top Democrat, Rick Larsen.

Some states charge fees for EVs to cover road repair costs. Congress has for the past three decades opted not to increase fuel taxes to pay for rising road repair costs. Some Republican senators in February 2025 proposed a R16 500 ($1 000) tax on EVs for road repair costs.

The Sierra Club, an environmental group, criticised the bill, saying it would cut funding for electric vehicle charging infrastructure and "includes an irresponsible tax for EV and plug-in hybrid drivers."

The bill would also direct the US Transportation Department within two years to issue regulations establishing performance-based safety standards for autonomous buses, trucks and other commercial vehicles. It would not apply to passenger cars and would pre-empt state laws.

The bill would require autonomous school buses carrying young students to have a human operator.

Last year, the Electrification Coalition, an EV advocacy group, argued that a R4 122 ($250) fee for EVs was unfair, since an average petrol-powered vehicle pays just R1 452 ($88) yearly in federal fuel taxes.

Since 2008, more than $275 billion, including $118 billion from the 2021 infrastructure law, has been shifted from the general fund to pay for road repairs.

Given the November congressional election, some lawmakers say it will be challenging to reach a deal by 30 September on funding.

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