Graves Takes First Step to Add New Highway Trust Fund (HTF) Revenue

What happened: House Transportation & Infrastructure (T&I) Committee Chairman Sam Graves (R-Mo.) April 29 released details of a revenue and spending package that includes:

• $200 federal annual registration fee for electric-powered cars and light trucks;
• $100 federal annual registration fee for hybrid-powered cars and light trucks; and
• $20 federal annual registration fee for non-electric/hybrid cars and light trucks.

All three would be indexed to inflation. The electric and hybrid fees would go into effect upon enactment, while the fee on all other cars and light trucks would begin in Fiscal Year 2031. The plan would not impact commercial or farm-use vehicles.

Why it’s important: If enacted into law, these resources would be the first new, user-based revenues dedicated solely for surface transportation improvements in more than 20 years.  While official revenue estimates are not yet available, the new fees are not expected to bridge the gap needed to grow surface transportation investment levels.

Chairman Graves has noted that he envisions the $20 fee on all non-electric/hybrid cars and light trucks as a starting point to potentially shift HTF user revenue away from reliance on the federal motor fuels tax.

What’s next: The package will be considered in the T&I Committee April 30 and, if passed out of committee, will be included in the GOP’s tax and border security spending reconciliation measure slated for consideration by the House and Senate later this year.

ARTBA April 25 led a letter from 31 national associations and labor unions asking for the fees to be included in the package and sent another letter of support for the measure today.