Skip to content
Backfire News

Backfire News

Off-roading, racing, trucks, lifestyle, and entertainment news

Primary Menu
  • Latest
  • Racing
    • Motorsport & Sports
  • Trucks & Off-Road
  • Classic
    • Auctions
  • New Cars
    • Auto Shows
  • EV & Tech
    • Electric Cars
    • EV & Future Tech
    • Technology
  • Offbeat
  • Culture
    • Entertainment
    • Pop Culture
    • Lifestyle
    • Travel
  • Editorial
  • Home
  • Current News
  • Congress Weighs New Annual Federal Fee on EVs and Plug-In Hybrids as Road Tax Fight Heats Up
  • Current News

Congress Weighs New Annual Federal Fee on EVs and Plug-In Hybrids as Road Tax Fight Heats Up

Eve Nowell May 28, 2026 4 minutes read
time-lapse photography of city buildings

Congress is weighing a bipartisan proposal that could make owning an electric vehicle noticeably more expensive every year, and the timing is difficult for an EV market that’s already lost some momentum.

What the Bill Would Do

A new bill introduced in the House would impose a $130 annual federal fee on electric vehicles and a $35 fee on plug-in hybrids, fees that would apply nationwide on top of existing state-level EV registration charges already in place in at least 41 states. Some states already charge substantial annual amounts for EVs — New Jersey currently charges $260 and plans to raise that to $290 by 2028, while Colorado charges $50 — and the federal bill would stack on top of those costs. The fees wouldn’t stay flat, either: under the bill, the annual EV fee would rise by $5 every two years until reaching $150 in 2035, while plug-in hybrid fees would eventually climb to $50 by 2033. States would be responsible for collecting the money, with penalties for those that don’t comply.

The Case Supporters Are Making

Supporters argue EV owners should contribute to highway maintenance since they don’t pay gasoline or diesel taxes at the pump, taxes that help finance the Highway Trust Fund, which covers road and infrastructure repairs and has struggled financially for years. Republican Representative Sam Graves of Missouri, who chairs the House Transportation and Infrastructure Committee, has framed the proposal as a fairness issue tied directly to road usage. Democratic Representative Rick Larsen of Washington has also backed the bill, describing it as a bipartisan compromise rather than a punitive measure aimed at EV drivers.

Where Critics Push Back

Critics inside the automotive and environmental sectors are challenging the math behind the proposal. Industry groups argue the flat annual fee is significantly higher than what many gasoline vehicle owners actually pay in federal fuel taxes over a year — according to estimates cited by the Zero Emission Transportation Association, most Americans pay somewhere between $73 and $89 annually in federal gasoline taxes, while every EV owner under the new bill would pay $130 regardless of mileage. That distinction matters because gas-powered vehicle owners effectively pay based on usage: drive more, buy more fuel, pay more tax; drive less, pay less. Under the proposed flat fee, an EV owner who barely uses their vehicle could end up with a larger federal bill than a gasoline driver covering far more miles annually.

The legislation would also eliminate the federal Carbon Reduction Program, which currently funds projects tied to lowering emissions, including EV charging infrastructure, bike paths, and other transportation initiatives, meaning federal support for charging access would shrink at the same time new fees kick in. For consumers already hesitant about range anxiety and vehicle prices, that combination could further slow EV adoption. Meanwhile, used EV sales have reportedly surged as fuel prices jumped following the conflict involving Iran, with buyers looking to avoid high gasoline costs increasingly turning toward secondhand electric vehicles — a trend the proposed federal fees could directly affect, since affordability is often the deciding factor between an EV, a hybrid, or a gasoline vehicle.

An Awkward Political Backdrop

The bill arrives as President Trump has proposed suspending the federal gasoline tax entirely to help Americans deal with rising fuel prices. If lawmakers were to pause federal fuel taxes while simultaneously approving new annual EV fees, electric and plug-in hybrid owners could end up as the only drivers paying federal highway-use taxes at all, an outcome critics say would create a real contradiction in transportation policy. Federal gasoline taxes themselves haven’t increased since 1993, sitting at 18.4 cents per gallon for gasoline and 24.4 cents for diesel; inflation and rising infrastructure costs have steadily eroded the purchasing power of those taxes, contributing to the Highway Trust Fund’s ongoing shortfalls. Rather than reforming fuel taxes broadly, Congress appears focused on carving out a separate fee structure aimed specifically at electric vehicles, an approach already drawing frustration from EV advocates and industry groups, especially given the proposal’s bipartisan backing, which gives it a real chance in the House even though its fate in the Senate remains uncertain.

For drivers and enthusiasts, the debate extends well beyond electric vehicles alone. It touches the broader fight over who pays for America’s roads, how transportation policy gets shaped going forward, and whether lawmakers are building these systems around fairness or politics. Once governments identify a new category of vehicle owners willing to absorb extra fees, history suggests those costs rarely move in only one direction.

Continue Reading: $5,000 Time Capsule: Massive Hot Rod Magazine Collection Surfaces After 25-Year Hunt | VW Tiguan Burn Lawsuit Heads to Trial After Driver Claims Heated Seat Left Her With Second-Degree Burns

About the Author

Eve Nowell

Administrator

Eve Nowell writes about cars for Backfire News, and she comes by it honestly—she grew up in a racing family, around engines and pit lanes before she was old enough to drive. That world isn't a beat she picked up; it's just where she's always been. At Backfire News she covers off-roading, classic car culture, motorsports, and the people behind the machines. She writes with the enthusiasm of someone who genuinely loves this stuff, but she's a stickler for getting the details right—the kind of writing that holds up with actual gearheads. She's still early in her career and building her own voice, bringing a fresh take to a world she's known her whole life. Her work runs across racing coverage, truck and off-road culture, collector vehicles, and the wider lifestyle that comes with all of it. When she's not writing, she's usually trackside, out in the garage, or chasing down the next story worth telling.

View All Posts

Post navigation

Previous: 19 Hurt After Panic Sends Crowd Running at South Carolina Motorcycle Rally, Officials Say No Threat Was Found
Next: Alex Albon’s Groundhog Collision at the Canadian GP Reignites Montreal’s Wildlife Problem, Draws PETA Pressure

Related Stories

Rows of Joe Gibbs Racing Cup Series cars on the team's shop floor in Huntersville, North Carolina
  • Current News
  • Racing
  • Sports

A Text in Heather Gibbs’ Files Asked What Car Chris Gabehart Drives, 23 Days Before JGR Sued

Kyle Matthews October 3, 2026 0
Screenshot 2026-10-01 at 12.03.12 PM
  • Current News

Subaru’s GD25 WRX and ZC15 BRZ: Chassis-Code Tributes Capped at 650 Cars

Eve Nowell October 2, 2026 0
Screenshot 2026-10-01 at 11.55.17 AM
  • Current News

Kurt Busch Buys Back His 2000 Roush Race Truck at Mecum Nashville

Eve Nowell October 2, 2026 0

Trending

An 11-Year-Old Pleaded Not Guilty in Seminole County Court Over His 4,500-Watt Electric Dirt Bike Black electric dirt bike without pedals parked on a rocky trail 1
  • News
  • Policy and environment

An 11-Year-Old Pleaded Not Guilty in Seminole County Court Over His 4,500-Watt Electric Dirt Bike

October 4, 2026 0
EPA Modeled Its Replacement for DEF Derates on a 90-Second Seatbelt Chime Study Diesel exhaust fluid pumps under a canopy at a Buc-ee's travel center 2
  • News
  • Policy and environment
  • Trucks & Off-Road

EPA Modeled Its Replacement for DEF Derates on a 90-Second Seatbelt Chime Study

October 4, 2026 0
Resurrection Mary: The Girl in White Who Vanishes From Your Passenger Seat Resurrection Cemetery on Archer Avenue in Justice, Illinois 3
  • Offbeat
  • Pop Culture

Resurrection Mary: The Girl in White Who Vanishes From Your Passenger Seat

October 4, 2026 0
Billy Joel’s No-Reserve Auction Lists a 2008 Harley Knucklehead, 61 Years After the Last One Left Milwaukee Four Ducatis from the Billy Joel Motorcycle Collection 4
  • Auction
  • Classic & Collector
  • News

Billy Joel’s No-Reserve Auction Lists a 2008 Harley Knucklehead, 61 Years After the Last One Left Milwaukee

October 4, 2026 0
Bentley Torcal Shows Up in Beverly Hills With Its Grille Lit Four Days After the London Reveal Green Bentley Torcal electric SUV front three-quarter view showing its diamond-pattern grille 5
  • Electric Cars
  • New Cars & Reviews

Bentley Torcal Shows Up in Beverly Hills With Its Grille Lit Four Days After the London Reveal

October 4, 2026 0

Browse by Section

  • Latest
  • Racing
    • Motorsport & Sports
  • Trucks & Off-Road
  • Classic & Collector
    • Auctions
  • New Cars & Reviews
    • Auto Shows
  • EV & Tech
    • Electric Cars
    • EV & Future Tech
    • Technology
  • Offbeat
  • Culture
    • Entertainment
    • Pop Culture
    • Lifestyle
    • Travel
  • Editorial
  • Policy & Safety
    • Policy & Environment
    • Safety & Recalls
    • Ownership
  • Deals
    • Amazon Deals
    • Buying Guides

The day’s car news, in your inbox

Off-roading, racing, trucks and automotive culture from Backfire, free in your inbox.

Sponsored

Compare auto loan offers at myAutoloan.com

Popular Topics

airplanes auctions barn find boats California car theft celebrity Chevrolet classic classic cars crash crime electric vehicles exotic F1 Ferrari Ford Formula 1 history hypercar insurance lawsuit luxury military motorcycle motorsport news movie muscle NASCAR offroad police Porsche racing recall repairs restomod road safety sports supercar SUV technology trucking trucks tuner weird

You may have missed

Black electric dirt bike without pedals parked on a rocky trail
  • News
  • Policy and environment

An 11-Year-Old Pleaded Not Guilty in Seminole County Court Over His 4,500-Watt Electric Dirt Bike

Shawn Henry October 4, 2026 0
Diesel exhaust fluid pumps under a canopy at a Buc-ee's travel center
  • News
  • Policy and environment
  • Trucks & Off-Road

EPA Modeled Its Replacement for DEF Derates on a 90-Second Seatbelt Chime Study

Kyle Matthews October 4, 2026 0
Resurrection Cemetery on Archer Avenue in Justice, Illinois
  • Offbeat
  • Pop Culture

Resurrection Mary: The Girl in White Who Vanishes From Your Passenger Seat

John Lloyd October 4, 2026 0
Four Ducatis from the Billy Joel Motorcycle Collection
  • Auction
  • Classic & Collector
  • News

Billy Joel’s No-Reserve Auction Lists a 2008 Harley Knucklehead, 61 Years After the Last One Left Milwaukee

Shawn Henry October 4, 2026 0

Sections

  • Latest
  • Racing
    • Motorsport & Sports
  • Trucks & Off-Road
  • Classic & Collector
    • Auctions
  • New Cars & Reviews
    • Auto Shows
  • EV & Tech
    • Electric Cars
    • EV & Future Tech
    • Technology
  • Offbeat
  • Culture
    • Entertainment
    • Pop Culture
    • Lifestyle
    • Travel
  • Editorial
  • Policy & Safety
    • Policy & Environment
    • Safety & Recalls
    • Ownership
  • Deals
    • Amazon Deals
    • Buying Guides

Popular Topics

airplanes auctions barn find boats California car theft celebrity Chevrolet classic classic cars crash crime electric vehicles exotic F1 Ferrari Ford Formula 1 history hypercar insurance lawsuit luxury military motorcycle motorsport news movie muscle NASCAR offroad police Porsche racing recall repairs restomod road safety sports supercar SUV technology trucking trucks tuner weird

Get the daily roundup

Off-roading, racing, trucks and automotive culture from Backfire, free in your inbox.

  • About Us
  • Advertise
  • Amazon Deals
  • Privacy Policy
  • Terms of Service
  • Facebook
  • Instagram
  • X
  • YouTube
Copyright © 2026 Backfire News. All rights reserved. | MoreNews by AF themes.