US House moves to eliminate EV charging infrastructure funding and impose new taxes on EV owners

The US House Transportation & Infrastructure Committee has unveiled a new version of the Surface Transportation Reauthorization bill that proposes significant changes to electric vehicle (EV) policy. Most notably, the bill would discontinue funding for the National Electric Vehicle Infrastructure (NEVI) program, a key initiative supporting EV charging networks. It also seeks to repeal other environmental programmes such as the Department of Transportation’s Reduction of Truck Emissions at Port Facilities and the Carbon Reduction Program, while drastically cutting funds for the Charging and Fueling Infrastructure Grant Program. In addition to slashing infrastructure funding, the bill introduces a new annual tax on EV owners, starting at $130 and rising to $150 over time. This tax is justified on the grounds that EV drivers should contribute to the Highway Trust Fund, which is traditionally financed through gasoline taxes. However, critics highlight that the proposed tax would exceed the average federal gas tax paid by internal combustion engine (ICE) vehicle owners, which was around $95 in 2019. Earlier drafts of the legislation had even proposed a $250 annual tax, and separate legislation has suggested a one-time $1,000 fee on EV purchases. The proposal has drawn sharp criticism from EV advocates and industry groups. Ben Prochazka, Executive Director of the Electrification Coalition, emphasised that while progress has been made in expanding charging infrastructure, many potential EV buyers still face access challenges. He argued that cutting funding for these programmes would hinder the growth of essential infrastructure needed to support rising EV adoption. Prochazka also described the new tax as unfair and punitive, urging Congress to adopt a fuel-neutral approach that treats all drivers equitably rather than imposing higher costs on EV owners. The implications of the bill could be far-reaching for the US electric vehicle market, potentially slowing infrastructure development and increasing ownership costs at a time when EV adoption is accelerating. If enacted, the legislation may discourage consumers from switching to electric vehicles, undermining efforts to reduce emissions and transition to cleaner transportation. As the bill moves through the legislative process, stakeholders will be closely monitoring potential amendments and advocating for policies that support sustainable growth in the EV sector.