U.S. President Donald Trump talks to the media next to Tesla CEO Elon Musk, with a Tesla car in the background, at the White House in Washington, D.C., U.S., March 11, 2025. REUTERS/Kevin Lamarque
The draft text of a Republican megabill indicated that House Republicans intended to impose a $20 annual fee on each vehicle owned in the US.
According to Politico, the new provisions were included in the House Transportation Committee's portion of what President Donald Trump has referred to as "one big beautiful bill."
"The new fee is intended to move the country away from the 18.4 cents-per-gallon federal gasoline tax, which has not been raised since 1993 and has had its buying power steadily eroded even as infrastructure spending has increased," the report said. "Besides the broad $20 levy, the proposal would impose an annual vehicle registration fee of $200 for electric vehicles and $100 for hybrid vehicles."
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Transportation Chair Sam Graves (R-MO) said that the $20 fee would take effect in 2031, while other charges would be effective immediately.
The new fees were expected to raise $50 billion over the next decade.
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