Sen. Deb Fischer (R-NE) introduces AGC-backed legislation that would apply a federal user fee to electric vehicles (EVs)—in the form of a one-time tax on batteries used in EVs at the manufacturer—and apply the revenue to the highway trust fund.

Sen. Deb Fischer (R-NE) introduced AGC-backed legislation that would apply a user fee to electric vehicles (EVs)—in the form of a one-time tax on batteries used in EVs at the manufacturer—and apply the revenue to the highway trust fund. The bill, called the “Stop EV Freeloading Act” is supported by AGC, and our support was featured in the Senator’s press release announcing the legislation. As AGC’s CEO, Stephen Sandherr, said:

“While electric vehicles enjoy the benefit of our nation’s transportation system, they do not pay into the highway trust fund, which supports both highway and transit construction projects nationwide. Senator Fischer’s legislation adds much-needed funding to the trust fund, which will help close its chronic funding deficit, and preserves the important user fee-based principles on which our transportation system is based.”

The legislation was co-sponsored by Senators Ricketts (R-NE), Cornyn (R-TX), and Lummis (R-WY). While the IIJA pre-funded the highway trust fund through 2028, it will once again face a funding shortfall absent additional revenue. Legislation such as Senator Fischer’s could help bridge the gap, and AGC will monitor efforts to ensure EVs and other alternative fuel vehicles pay into the trust fund going forward.

If you have any questions, please contact Matthew Turkstra at (202) 547-4733, or [email protected].