May 18, 2026
House transportation bill slaps new tax on EV Drivers when gas prices are high and families are struggling, exacerbating affordability and eliminating vehicle choice at the worst possible time
LOS ANGELES — Plug In America, a national nonprofit accelerating the shift to electric vehicles (EVs), today strongly condemned the anti-consumer, anti-environment provisions targeting EV drivers in the newly released text of the BUILD America 250 Act, the House surface transportation reauthorization bill released by Chairman Sam Graves (R-MO) and the House Committee on Transportation and Infrastructure.
The bill introduces a new annual fee on electric vehicles, keeping Americans shackled to expensive gasoline while the rest of the world moves forward with more efficient, more convenient, and less expensive clean vehicle technologies.
“This bill punishes EV drivers for choosing a technology that protects American households from volatile fossil fuel prices, supports U.S. energy security and reduces deadly pollution,” said Joel Levin, Executive Director of Plug In America.
The BUILD America 250 Act’s EV fee proposal follows a string of federal actions that has already dramatically raised the cost of EV ownership. In 2025, Congress eliminated the $7,500 federal tax credit for new EVs and the $4,000 credit for used EVs — credits specifically designed to make clean transportation accessible to working and middle-class families. The EV charger tax credit is set to expire at the end of June. At the same time, Congress and the administration have repealed fuel-economy and tailpipe-pollution standards, effectively disincentivizing automakers from manufacturing EVs.
Now, the House seeks to add yet another annual financial burden on drivers who have already committed to cleaner transportation, while simultaneously doing nothing to address the federal gas tax, which has not been raised since 1993.
The average gasoline vehicle pays about $85 in federal gas taxes each year, an amount that has not been indexed to inflation and hasn’t increased in over 30 years. Stagnant gas taxes, coupled with rising construction costs, have created a funding gap in the highway trust fund, but rather than address the gap by adjusting existing taxes to inflation, the bill imposes a $130 tax on electric vehicles and a $35 fee on plug-in hybrids.
The proposed taxes on clean vehicles are also set to increase over time, unlike gas taxes. Many states already have punitive EV fees, and these unfair EV taxes will collectively push clean vehicles out of reach for the families and households who stand to benefit the most from driving a clean, affordable vehicle.
The BUILD America 250 Act arrives at a moment when American families are already facing an affordability crisis. Vehicle prices remain elevated. Tariffs have added thousands of dollars to the cost of new cars. The elimination of EV purchase incentives has already pushed the cost of saving time and money by going electric further out of reach for American families.
Rolling back EV adoption through punitive taxes and eliminating consumer incentives does not serve American energy independence — it deepens our dependence on oil, including foreign oil. Globally, EVs already displace millions of barrels of oil per day. Slowing EV adoption in the United States makes the U.S. more dependent on foreign oil.
Transportation accounts for the largest share of U.S. greenhouse gas emissions. EVs are a proven, cost-effective solution to reduce air pollution that causes nearly 20,000 premature deaths annually in the United States and costs the healthcare system tens of billions of dollars each year, which is yet another tax on the American people.
About Plug In America
Plug In America is the nation’s leading nonprofit organization dedicated to accelerating the use of plug-in electric vehicles in the United States through education, advocacy and research. Formed in 2008, Plug In America provides practical, objective information to consumers and dealerships about EVs through various programs, including National Drive Electric Month, Drive Electric Earth Month, PlugStar.com, and other public outreach events. Learn more at PlugInAmerica.org.
Media Contact: Lindsey Perkins
