U.S. Senate Republicans have introduced two bills aimed at eliminating the federal electric vehicle (EV) tax credit and imposing a $1,000 fee on new EV purchases to fund road repairs.
Led by Senator John Barrasso and backed by 14 others, including Senate Majority Leader John Thune, the first bill seeks to repeal the $7,500 new EV credit, the $4,000 used EV credit, and incentives for leased EVs and charging stations. These credits would end 30 days after the bill is signed into law. Detroit automakers, having invested billions in EV production, have pushed for a gradual phase-out instead.
The second bill, introduced by Senator Deb Fischer and co-sponsored by Senators Pete Ricketts and Cynthia Lummis, would require a one-time $1,000 fee at the time of purchase. Fischer argues this fee mirrors what gas-powered vehicle owners pay in fuel taxes over a decade. EVs, she noted, are heavier and contribute to increased road wear and tear. Currently, most road repair funds come from fuel taxes, which EVs do not pay.
Transportation Secretary Sean Duffy has acknowledged the need for EVs to contribute to road funding but noted the challenge of implementing a fair system. While some states already impose EV fees, Congress has avoided raising fuel taxes for decades. Since 2008, over $275 billion has been transferred from the general fund to cover road repairs.
Meanwhile, the Trump administration is freezing EV charging funds and rolling back emissions rules that would have pushed automakers toward greater EV production. Despite incentives, high costs remain a key barrier to wider EV adoption.
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