Trump’s ‘Big Beautiful Bill’ Passes With Bigger EV And Hybrid Taxes

Registering your hybrid or EV just got one step closer to being far more expensive

After a marathon session in the House, lawmakers passed Donald Trump’s ‘Big Beautiful Bill’. While it still has to go through the Senate before becoming a law, the implications are indeed big. Under the proposal, hybrid owners could pay $100 more every year to register their car, while EV drivers would face a steeper fee of $250.

Those new taxes are meant to combat the debt that the government incurs as a result of crumbling infrastructure. Right now, that work is mostly funded by gas taxes which are currently set at $0.18 per gallon. With more people driving EVs and hybrids, people are buying gas less and so the funds are dwindling.

More: California’s EV Future Just Got Canceled By Washington

“The bill includes provisions from the Transportation and Infrastructure Committee to provide historic investments in the United States Coast Guard to strengthen our national and border security, as well as … ensuring that electric vehicles begin contributing to the Highway Trust Fund,” said Rep. Sam Graves (R-Mo.), chairman of the influential Transportation and Infrastructure Committee.

According to TTNews, the last time the Highway Trust Fund received any sort of assistance was back in 2021. Despite that, it goes into tens of billions of dollars of debt every year. Since EVs buy very little fuel, they’ve often been seen as freeloaders on American roads. Hybrids fall into the murky middle. Both tend to weigh more on average than a gas-powered car in the same segment so it’s worth considering that they have the potential to do more damage.

A Broken System Gets a Shakeup

The reality here is that with or without EVs and hybrids, the government’s plan for funding highway infrastructure was a failure. It’s never been tied to inflation, so it’s continually lagging behind, and now we’re here, 20 billion dollars in debt annually.

That said, it seems that the pendulum of failure might be swinging just as strongly but in the other direction now. As we pointed out in our earlier coverage of this topic, now, EV and hybrid drivers will end up paying far more than gas-car drivers. Ultimately, this could still end up getting axed before it becomes law. GOP leaders in the Senate could make several changes before trying to pass it there.