Illustration: Gabriella Turrisi / Axios
Republicans want to impose a new fee on EVs and cut IRA grant funding to pay for border security and air traffic control tech upgrades.
Why it matters: House Transportation and Infrastructure's reconciliation proposal released Tuesday estimates EV registration fees would help raise $50 billion over 10 years that would replenish losses from the Highway Trust Fund.
- The elimination of seven IRA programs at the Federal Highway Administration, General Services Administration, and Federal Aviation Administration will save $4.6 billion, the committee said.
What's inside: The bill would charge EV drivers an annual $200 registration fee and hybrid drivers a $100 fee.
- The bill would also assess a $20 annual registration fee on all other passenger vehicles beginning in 2031.
- ZETA, the EV trade group, told the committee that a $100 annual fee would be commensurate with the gasoline tax that other vehicles pay each year.
Between the lines: The bill is among the first signs of IRA funding rescissions from Congress.
- The bill targets FHA grants for neighborhood access and equity, environmental review implementation, and low-carbon transportation materials grants.
- The funding is for "progressive priorities that are either duplicative, are projects that states and other entities may pursue if they prioritize them, or are efforts that should be driven by the industry and not mandated by the federal government," the committee said.
The big picture: The proposal will reduce the deficit by more than $10 billion while boosting funding for the U.S. Coast Guard and FAA air traffic control technology, the committee said.
What's next: The committee is scheduled to mark up the legislation Wednesday.
