Consumer Reports, a leading consumer advocacy organization, urged Republican lawmakers on Wednesday to abandon a proposal to impose an annual fee on electric vehicles (EVs) aimed at funding road repairs. The plan initially calls for a $250 yearly fee on EVs, with Senator Bernie Moreno proposing to increase this to $500 for electric cars and $250 for plug-in hybrids.
Consumer Reports warned the fees would impose a disproportionate financial burden on EV owners, who could pay between three and seven times more than owners of comparable gasoline-powered vehicles in federal gas taxes. The proposed fees could notably affect owners of Tesla, General Motors, and other electric vehicle brands.
Chris Harto, a senior policy analyst at Consumer Reports, criticized the fees as “punitive taxes designed to confiscate fuel savings from consumers who just want to save money for their families.”
The broader legislative context includes the U.S. House dropping a previously proposed $20 federal vehicle registration fee for all vehicles starting in 2031. The House bill also seeks to end the $7,500 new EV tax credit by the end of 2024 for most automakers, repeal a $4,000 used EV tax credit, dismantle vehicle emissions regulations, and terminate an Energy Department loan program that supports green vehicle technology development. Additionally, it aims to phase out EV battery production tax credits by 2028.
Ford has expressed concern about the bill’s provisions, particularly the elimination of EV battery production credits tied to Chinese technology, which jeopardizes its $3 billion investment in a Michigan plant currently 60% complete and expected to employ 1,700 workers.
Separately, President Donald Trump plans to sign resolutions that block California’s EV sales mandates and diesel engine regulations, according to industry and House aides.