Legislative Support for Electric and Hybrid Vehicle Funding in New Budget Proposal

A significant tax and budget bill recently passed by the House aims to revitalize a crucial federal fund that supports transportation infrastructure.

The proposed legislation introduces annual fees of $250 for electric cars and $100 for hybrids, which would help replenish the Highway Trust fund. This initiative was included in a Republican-led budget bill that moved forward on May 22.

Rep. Sam Graves (R-Mo.), who chairs the Transportation and infrastructure Committee, highlighted how this funding could enhance freight routes and commuter pathways across the nation by supplementing existing fuel tax revenues.

“this bill not only invests in our highways but also strengthens national security through support for agencies like the Coast Guard,” Graves noted after its passage.The committee is set to update federal highway programs next year.

The trust fund has been struggling due to outdated gas and diesel taxes established during Clinton’s presidency, with its last major boost coming from a bipartisan infrastructure law worth $1.2 trillion approved in 2021.

“House Republicans have worked tirelessly over the past year to prepare this reconciliation package with President Trump,” said Majority Leader Steve Scalise (R-La.). “I’m thankful to everyone involved as we reached this milestone.”

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“This ‘big gorgeous bill’ is a win-win situation,” Scalise added, urging swift Senate approval so it can reach Trump’s desk without delay.

This high-stakes legislation now awaits action from Senate Republicans. The White House has consistently pushed Congress to pass this comprehensive tax reform package since January.

The American Trucking Associations expressed support for these new fees, arguing that electric vehicles currently contribute nothing towards maintaining roadways while traditional vehicles do through fuel taxes. They stated that “the proposed registration fees will ensure all drivers contribute fairly.”

“The reconciliation package addresses this imbalance by introducing registration costs similar to what conventional car owners pay annually via gas taxes,” they explained regarding hybrid contributions as well.

Neil Bradley from the U.S. Chamber of Commerce praised the measure’s passage as essential for American workers and businesses seeking long-term tax relief—emphasizing how it could stimulate economic growth and improve living standards nationwide.

Though, Democratic leaders like Chuck Schumer criticized it sharply; he described it as detrimental rather than beneficial—claiming it undermines healthcare access while exacerbating poverty levels across communities.
Hakeem Jeffries echoed these sentiments stating there was an possibility missed here—a chance at bipartisanship aimed at creating an economy accessible to all hardworking Americans instead of pushing extreme policies unilaterally down their throats with what he termed “one big ugly bill.”....