Trump's 'Big Beautiful Bill' Approved, Including Higher Taxes on EVs and Hybrids | Carscoops

      Registering your hybrid or electric vehicle (EV) may soon become significantly more costly.

      On May 23, 2025, the U.S. House of Representatives passed Donald Trump’s ‘Big Beautiful Bill’ legislation. This bill now moves to the Senate, where it must also secure approval before reaching the president’s desk.

      If enacted, owners of EVs and hybrids could see a notable increase in their annual registration fees. The new proposal suggests that hybrid car owners might pay an additional $100 annually to register their vehicle, while those with electric vehicles could face a hike of $250.

      These new taxes are intended to address the debt associated with deteriorating infrastructure. Currently, infrastructure work predominantly relies on gas taxes, which are set at $0.18 per gallon. With the rising number of EVs and hybrids on the road, gasoline purchases are declining, leading to a decrease in available funds.

      According to Rep. Sam Graves (R-Mo.), chairman of the Transportation and Infrastructure Committee, “The bill includes provisions to make significant investments in the United States Coast Guard to enhance national and border security, as well as ensuring that electric vehicles start contributing to the Highway Trust Fund.”

      TTNews reports that the Highway Trust Fund last received assistance back in 2021 and continues to accumulate tens of billions of dollars in annual debt. Electric vehicles utilize very little fuel and are often viewed as not contributing fairly to road maintenance. Hybrids fall into a more ambiguous category, as they generally weigh more than traditional gas vehicles in their class, potentially causing more wear and tear on the roads.

      A Flawed System Undergoes Change

      The reality is that the government's strategy for funding highway infrastructure has not succeeded, regardless of the presence of EVs and hybrids. It has never been adjusted for inflation, resulting in a persistent annual deficit of $20 billion.

      However, it seems that the solution might be tilting too far in the opposite direction, as EV and hybrid drivers may end up shouldering a higher financial burden than those driving gasoline vehicles. Ultimately, this proposal might still be revised or eliminated before it becomes law, as GOP leaders in the Senate may implement several changes to it.