MONEY

$130 federal EV fee advances through House committee

May 21, 2026, 2:15 PM | Updated: 3:08 pm

tesla - ev fee...

A Tesla car drives along a highway. (Photo: Justin Sullivan, Getty Images)

(Photo: Justin Sullivan, Getty Images)

Electric vehicle owners in Washington — already paying $225 a year in state registration charges — could soon face an additional $130 annual federal fee under a bipartisan highway bill that cleared the House Transportation and Infrastructure Committee on Thursday.

The fee falls under the BUILD America 250 Act, a $580 billion, five-year surface transportation package.

“To date, electric vehicles have been exempt from contributing any money to the Highway Trust Fund,” Rep. Rick Larsen, D-Wash., said. “They’re paying $0 into the federal highway trust fund right now, and kind of, you know, getting away with it.”

The Highway Trust Fund pays for roads, bridges, transit, and other infrastructure nationwide. It is primarily funded by the federal gas tax of 18.4 cents per gallon.

Larsen, the ranking Democrat on the House Transportation Committee, said because EV owners buy no gasoline, they contribute nothing to the fund. He said the $130 fee reflects a negotiated compromise after Republicans proposed a $250 fee last year.

Larsen pointed to specific Washington projects funded by the Highway Trust Fund, including capital investment in the state ferry system and Sound Transit expansion.

Critics say the EV fee exceeds what gas drivers pay

Environmental groups have sharply criticized the fee. The Natural Resources Defense Council called it a “punch in the gut to the millions of Americans struggling to pay higher prices at the pump.”

Critics have also argued the $130 figure exceeds what the average gasoline driver pays in federal fuel tax each year. Larsen acknowledged the concern but said it didn’t change his mind.

“My number one concern is that users of the road pay into the Highway Trust Fund, so that we can use those dollars to fund the transit that people want, the roads and bridges that people want in our state,” he said.

Larsen was unfazed over concerns that the fee could slow EV sales nationwide.

“I have zero concern about EV growth. EVs are here to stay,” he said. “I don’t think a $130 registration fee on EVs is going to stop someone from buying an electric vehicle who really wants it.”

The bill now heads to the full House, likely in late June.

Read more of Aaron Granillo’s stories here.

Money

lotto ticket seattle...

KIRO 7 News Staff

$2.5 million Lotto ticket sold in Seattle

Did you buy a Lotto ticket in Seattle? Washington’s Lottery said someone just won $2.5 million, and they’re waiting for that person to come forward.

1 day ago

kalshi wa gambling betting...

MyNorthwest Staff

Kalshi ordered to cease most betting operations in WA

A final order was issued by a King County Superior Court judge, requiring Kalshi to cease its illegal gambling operation in the state.

6 days ago

wa gas prices...

Jason Sutich

WA gas prices surge as one county nears $6 a gallon

The price per gallon of gasoline in Washington sharply rose compared to one month ago, adding more than 18 cents to the state's average.

6 days ago

spokane complex fire cliff mass climate change...

Luke Duecy

Smoke damage could leave surviving Spokane homes with hidden losses, consumer advocate warns

Consumer advocates are warning Spokane homeowners whose houses remain standing may still face costly damage from toxic smoke.

14 days ago

Sheriff (KSO) King County...

James Lynch

‘We are building safer communities’: King County receives $15M grant to strengthen crisis response, prevent gun violence

King County Executive Girmay Zahilay announced Tuesday that King County received a $15 million grant.

15 days ago

wa electricity bill PSE...

MyNorthwest Staff

Washington AG Nick Brown fights back against PSE’s proposed 29% electric, 20% gas rate hikes

Washington Attorney General Nick Brown is pushing back against proposed utility rate hikes from Puget Sound Energy (PSE).

19 days ago

$130 federal EV fee advances through House committee