"Big Beautiful" Budget Bill Includes Registration Fees for Hybrids and EVs

by Chris Teague

Published: May 23rd, 2025

big beautiful budget bill includes registration fees for hybrids and evs

The House of Representatives recently passed President Trump’s budget bill, which includes a range of controversial add-ons. One of them is an annual registration fee for EVs and hybrids that could add a couple hundred dollars to the cost of ownership.

Tucked into the “Big Beautiful Bill” is a requirement for an annual $100 hybrid registration fee and a $250 EV registration fee. Revenues generated from the charges will pad the Highway Trust Fund. Rep. Sam Graves, the Transportation and Infrastructure Committee’s chair, said, “The bill includes provisions from the Transportation and Infrastructure Committee to provide historic investments in the United States Coast Guard to strengthen our national and border security, as well as… ensuring that electric vehicles begin contributing to the Highway Trust Fund.”

The Highway Trust Fund’s revenues have declined as EVs and electrified vehicles become more popular. It’s backed by gas and diesel taxes, which have shrunk as more drivers opt for electric power.

That said, the budget bill faces an uncertain future in the Senate. Many republicans have expressed grave concerns over the legislation’s impacts, which extend to many other, much more important changes, such as cuts to Medicaid and food security programs. Senators could make a number of revisions to the bill before (and if) it passes, so some of the small provisions like the hybrid/EV registration fee could change or disappear completely before all is said and done.

[Images: Subaru, Honda, Kia]

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#EVs #Hybrid #evtaxes #roadusetaxes

Chris Teague

Chris grew up in, under, and around cars, but took the long way around to becoming an automotive writer. After a career in technology consulting and a trip through business school, Chris began writing about the automotive industry as a way to reconnect with his passion and get behind the wheel of a new car every week. He focuses on taking complex industry stories and making them digestible by any reader. Just don’t expect him to stay away from high-mileage Porsches.

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4 of 97 comments

D on May 28, 2025

Fair or not, I would much rather pay an annual registration fee than have big brother looking over my shoulder to tax every mile.

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Lou_BC on Jul 09, 2025

The frequent mentioning of "Big Beautiful Bill", I thought that was a tRump/Epstein private island consort.

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- See 1 previous
- FreedMike on Jul 09, 2025
  
  Good to know Epstein Air wasn't sexist...underage boys and girls were both welcome, apparently.
  
  Like
- Stellantis Guy on Jul 09, 2025
  
  Great, my neighbor is being a jerk again.
  
  Like

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