Trump’s Budget Proposal Includes a Big, Beautiful $250 Fee for EV Drivers

President Trump is proposing new annual fees for hybrid and EV owners in his “Big, Beautiful Bill,” which drivers would need to cough up at their state’s Department of Motor Vehicles (DMV) during annual vehicle registration.

Hybrid owners would need to pay $100 extra, and EV owners $250, on top of state fees for battery-operated vehicles. Thirty-nine states already charge a fee for EVs and hybrids, ranging from $50 to $200. The fees grow over time in several states as well, hitting $290 in New Jersey by 2028, according to the National Conference of State Legislatures.

That means owning an EV or hybrid could cost you an extra $300-$400 per year. The idea is to make up for lost taxes collected at the gas pump, though some argue the proposal would overcharge EV drivers. The cost would be the equivalent of 1,400 gallons of gasoline, nearly three times the amount an average commuter uses in a year, according to InsideEVs.

Gas taxes typically go toward road maintenance projects, so it makes sense that EV owners would contribute to that, especially since heavy vehicles can have more wear and tear. However, the price premium on that wear and tear is not clearly defined.

Gas savings is the number one reason people would consider buying an EV, though interest in them recently hit a six-year low, AAA reports. If gas savings are now reallocated as annual fees, that could sour consumers on low-emission vehicles. Trump also hopes to eliminate the $7,500 federal EV tax credit, which is also contributing to a declining interest in EVs, AAA found.

The bill is not final. After narrowly passing a vote in the House, it’s now in the Senate, where it’s likely to face changes. The Congressional Budget Office (CBO) estimates it could add $2.4 trillion to the deficit over the next decade. Elon Musk calls it a “disgusting abomination” that would undermine his cost-cutting initiatives with the Department of Efficiency (DOGE).

About Emily Forlini

Senior Reporter

I’m the expert at PCMag for all things electric vehicles and AI. I’ve written hundreds of articles on these topics, including product reviews, daily news, CEO interviews, and deeply reported features. I also cover other topics within the tech industry, keeping a pulse on what technologies are coming down the pipe that could shape how we live and work.

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