Congress Proposes Electric Vehicle Fees to Shore Up Highway Trust Fund

Key Details House lawmakers are advancing comprehensive surface transportation legislation to address the Highway Trust Fund's long-term solvency crisis. Transportation and Infrastructure Committee Chairman Sam Graves introduced highway policy legislation on May 17 that proposes new annual registration fees for electric vehicles and plug-in hybrids, marking the first new revenue stream for the trust fund in decades. Why It Matters The Eisenhower-era Highway Trust Fund helps states finance critical infrastructure maintenance projects. Congress faces a September 30 authorization deadline to pass multiyear highway reauthorization, with an emphasis on transportation safety, freight mobility, and supply chain connectivity. Available Options Policy experts at the Eno Center for Transportation have outlined clear paths forward. One option calls for a 10-cent immediate increase in federal motor fuel taxes, followed by gradual increases over the next decade to close the solvency gap. Alternatively, Congress could continue transferring money from the general fund to keep the account solvent, a practice used for approximately two decades. Industry Perspective The U.S. Chamber of Commerce supports fuel tax increases to address the structural shortfall. Experts emphasize that while the decision is difficult, Congress has straightforward choices available to stabilize the fund before insolvency becomes unavoidable.