The United States is looking for more ways to extract money from electric vehicle owners.
There is a war on EVs within the United States. Last year, the current administration removed tax incentives for buying a new electric vehicle, significantly slowing sales and prompting some automakers to pivot away from pushing more EVs. Trump’s administration has also pushed back on various emissions regulations and officially revoked the Biden-era non-binding executive order that set a goal for EVs to make up 50% of all new car sales by 2030.
At the same time, the president started a war in the Middle East, which skyrocketed gas prices to the highest they’ve ever been. Gas prices have remained stubbornly high, prompting Americans to consider EVs once again. However, going electric might not save you as much as you hoped if the U.S. government has its way.
What is the Build America 250 Act?
Back in April 2026, the government decided to tax vehicles by weight after noticing a significant decline in gas tax revenue. Although it hasn’t increased since 1993, this gas tax funds the government’s maintenance of public roads and bridges. To figure out a way to tax EV owners, they proposed taxing vehicles by weight rather than by fuel consumption. This would clearly target EVs, which weigh more than gas-powered cars.
But that’s not all. The House Transportation and Infrastructure Committee also wanted a $250 annual fee on EVs, which is a lot higher than the $88 per year that gas-powered cars pay in gas taxes.
Now, the Build America 250 Act aims to add an annual government fee of $135 to fully electric vehicles and $35 for plug-in hybrids. This fee would rise by $5 every year until it reaches $150 for EVs and $50 for PHEVs. This appears to be the final proposal rather than taxing vehicles by weight. It also appears to be the new number, lowered from $250. The money collected from EVs would be sent to the U.S. Department of Transportation’s Highway Trust Fund, forcing them to “pay their fair share” of road maintenance.
This bill has been backed by both Republicans and Democrats, a rare time they agree on something. Meant to replace the current highway funding system that expires in September, the bill is currently being discussed by the House Budget Committee. The next step would be Congress. On top of the EV tax, the Build America 250 Act includes $21 billion for the Coast Guard and $12.5 billion for the Federal Aviation Administration, while removing funding for Neighborhood Access and Equity Grants, Environmental Review Implementation Funds, Low-Carbon Transportation Materials Grants, and other environmentally focused hoopblah.
Honestly, with the way gas prices are going, I think the extra few hundred you’ll pay in taxes a year is still a far better deal than paying at the pump at this rate. Just really make sure the EV you pick is worth the extra taxes. I’ll give you one right here to avoid.
