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

House Transportation and Infrastructure Committee Chair Sam Graves (R-Mo.) is pushing to add a $250 annual federal tax on electric vehicle drivers to an upcoming transport bill, with hybrid owners facing a $100 yearly fee. This marks the second attempt by Graves to impose such a tax; his committee failed to include an escalating EV tax starting at $200 annually in last year's budget. The move comes as EV sales have plummeted since January 2025, dropping to 5.1 percent of new vehicle sales in January 2026 from 8.3 percent a year earlier, following the Trump administration's elimination of consumer EV tax credits and rollback of fuel efficiency regulations. Graves' proposal directly contradicts the administration's stated opposition to environmental regulations, though the bill's fate in Congress remains unclear.