Senate Begins Reconciliation Push

What happened: Senate Majority Leader John Thune (R-S.D.) set a July 4 deadline for his chamber’s passage of the “One Big Beautiful Bill” Act, which passed the House in May. The Senate will modify the House version, in order to attract 51 votes, but must do so without jeopardizing narrow support in the House.

The fate of the fee on electric and hybrid vehicles, as well as other business-related tax provisions included in the House-passed measure is unknown, but ARTBA June 5 led a letter of 22 national associations and labor unions sent to Senate Finance Committee Chairman Mike Crapo (R-Idaho) urging its inclusion in any reconciliation package.

Details on tax provisions are expected in the coming weeks.

Why it matters: If the vehicle fees are enacted and dedicated to the Highway Trust Fund, it would be the first new user-fee revenue for the fund in more than two decades. It would also help ensure all users of roads and bridges contribute to the transportation system’s maintenance and expansion.

What’s next: If the Senate passes modified legislation, it must go back to the House for approval before heading to the President’s desk for signature. ARTBA will continue its advocacy efforts to ensure the electric vehicle and hybrid fees are included in any final package.