Republicans in Congress add $250 annual federal EV tax to transport bill

House Transportation and Infrastructure Committee Chair Sam Graves is pushing to include a $250 annual federal tax on EVs and $100 on hybrids in an upcoming transport bill, arguing EV drivers don't pay gas taxes that fund highway spending. The proposal comes amid declining US EV sales, which dropped to 5.1% of new vehicles in January 2026 after the government ended consumer tax credits and rolled back efficiency regulations. Critics note that taxing the small EV market is largely symbolic and won't solve broader transportation funding shortfalls, especially since the federal gas tax hasn't been raised since 1993.