Republicans serving on the House Transportation Committee on Tuesday unveiled a new spending bill, which, if passed, would implement an annual fee of $20 for most car owners.
Why It Matters
The GOP bill would shape the federal government’s funding of transportation programs while cutting key initiatives designed to combat climate change. The new annual fee would provide more revenue for the Federal Highway Administration, which oversees construction and maintenance of the country’s highway system.
What To Know
The bill would require a $20 fee for any “covered motor vehicle” that is not an electric or hybrid. Americans who own those would be required to pay $200 or $100, respectively.
Any state that does not comply would lose some federal funding. The fees will be increased “on an annual basis to account for the rate of inflation each fiscal year in accordance with the Consumer Price Index for All Urban Consumers of the Bureau of Labor Statistics” if signed into law.
The measure would take effect in October 2031, according to the bill. It would raise $50 billion for highway repairs within 10 years, reported Reuters.
House Transportation Committee Chairman Representative Sam Graves, a Missouri Republican, explained during a hearing Tuesday morning why the committee believes the fee is necessary.
“Let me be clear. Republicans support investing in infrastructure, but our highway funding system is founded upon the principle that roadway users must pay for their use of the system. Failing to restructure our surface transportation funding sources will have severe consequences for our nation’s transportation system and the American people,” Graves said.
He continued, “That is why tomorrow, as part of reconciliation, the committee will take the first step towards [Highway Trust Fund] solvency and stability. We will vote on a proposal to leverage existing state vehicle registration systems and assess a new fee of $200 on electric vehicles (EVs), $100 on hybrid vehicles and a $20 fee on most other passenger vehicles. If successful, these new user fees would represent the first new funding streams into the Highway Trust Fund in more than 30 years.”
When reached by Newsweek for further comment, a committee spokesperson pointed to Graves’ earlier statement.
At the moment, the fund is financed primarily through fuel taxes, which EV owners don’t pay.
What People Are Saying
Representative David Rouser, North Carolina Republican who serves as highways and transit subcommittee chairman, said during the hearing: “Without a serious solution, our state, local, and private sector partners risk losing a reliable funding source critical to project delivery and our national economy. While General Fund bailouts have offered short-term relief at the expense of the individual American taxpayer, they do not address the long-term challenges that plague the Highway Trust Fund.”
Conservative radio host Dana Loesch wrote on X: “This is the proposal that @chiproytx just told me about on air. It is one of the stupidest, big gov proposals (next to expanding welfare to pay women to have babies instead of just cutting taxes and regs) that I’ve seen in recent years.”
What Happens Next
The bill will be considered by the GOP-controlled House of Representatives. It’s unclear if it has enough support to pass.
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