House lawmakers unveiled bipartisan legislation that would impose a new annual $130 fee on electric vehicles and a $35 fee on plug-in hybrid vehicles as part of a proposed five-year, roughly $580 billion highway reauthorization bill. The proposal aims to offset declining gasoline tax revenue used to fund federal road repairs as EV adoption increases.

• The bill would authorize the Federal Highway Administration to gradually raise EV fees to $150 and plug-in hybrid fees to $50.
• Conventional hybrid vehicles would not face new annual fees under the proposal.
• House Transportation Committee Chair Sam Graves and ranking member Rick Larsen backed the fees under a “user-pays” model for road funding.
• Senate Democrats including Ron Wyden and Sheldon Whitehouse opposed the proposal, arguing it could slow EV adoption.
• The legislation would repeal several Biden-era climate and emissions reduction transportation programs.
• Transportation authorizations are set to expire on Sept. 30, increasing pressure on Congress to pass a new infrastructure package.

Relevant Companies

• Tesla ($TSLA) – New annual EV fees could affect ownership costs for electric vehicle buyers.
• Rivian ($RIVN) – Proposed road-use fees may impact consumer demand for EVs.
• General Motors ($GM) – GM’s expanding EV lineup could be affected by changes to federal transportation and vehicle fee policy.

Editor’s Note: This is a developing story. This article may be updated as more details become available.