President Trump’s new budget plan includes a surprising proposal for people who drive electric and hybrid cars. It’s called the “Big, Beautiful Bill,” and it would add extra charges to the annual fees that drivers already pay when registering their vehicles.
A New Fee for Going Green
If the bill becomes law, hybrid car owners would need to pay an extra $100 every year. For electric vehicle (EV) drivers, the new fee would be a much bigger $250 each year.
This would be on top of what drivers already pay in their states. Many states—39 to be exact—already charge special fees for owning battery-powered vehicles. These fees usually range from $50 to $200. Some states plan to increase these over time. For example, New Jersey’s EV fee is set to grow to $290 a year by 2028.
So, if this bill passes, some EV drivers could end up paying between $300 to $400 every year just in extra fees. These new charges would need to be paid every year at the Department of Motor Vehicles (DMV) when people go to renew their registration.
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Why the Government Wants More Money from EV Owners
The main reason behind this new fee is gas tax money. When people drive gas-powered cars, they pay a tax on every gallon of fuel they buy. That tax helps pay for things like fixing roads and building new highways. But EVs and hybrids don’t use as much gas—or any gas at all—so the government collects less money from those drivers.
This new proposal is meant to make up for that lost money. By charging EV and hybrid owners a set yearly fee, the government hopes to keep road maintenance projects going strong.
However, some people argue that this plan is unfair. According to auto experts, the new $250 fee for EV drivers is very high. In fact, it’s the same as what a gas driver would pay if they bought about 1,400 gallons of fuel in one year. Most regular drivers only use around 500 gallons of gas each year. That means EV drivers could be paying almost three times more than they would have in gas taxes.
Supporters of the fee say EVs should still help pay for the roads, especially since many EVs are heavier than gas cars and could cause more wear and tear. But critics say the amount doesn’t match the actual cost and seems to punish people for choosing cleaner vehicles.
Higher Costs and Fewer Perks for EV Owners
This proposal comes at a time when fewer people are interested in buying electric vehicles. According to a recent study, interest in EVs has dropped to the lowest point in six years. One of the top reasons people consider buying an EV is to save money on gas. But if those savings are replaced by large yearly fees, it could turn people away from going electric.
The bill also includes another change that could affect EV buyers. It plans to remove the $7,500 federal tax credit that EV owners currently receive. This tax credit helps lower the cost of buying an electric vehicle. Without it, EVs would become even more expensive to own.
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All of these changes could make owning an EV much less affordable. While the bill did pass in the House by a narrow margin, it’s now being looked at by the Senate. That means more discussions and possible changes may happen before anything becomes final.
In addition to the fees and tax credit cut, budget experts say the overall plan could add $2.4 trillion to the national deficit over the next ten years. That means the government could end up spending much more money than it brings in.
Right now, nothing is official. But if this proposal goes through, EV and hybrid owners across the country might have to start budgeting for much higher costs each year.
