The Congressional Budget Office found that the House version of the surface transportation reauthorization bill would expand the Highway Trust Fund deficit over five years, even with new levies on electric and hybrid vehicles included in the legislation.
The CBO analysis, released Thursday, projects cumulative shortfalls in the trust fund despite revenue increases from the proposed EV and hybrid fees. This assessment undercuts House Republicans' claims that the bill adequately funds infrastructure maintenance and expansion.
The Highway Trust Fund finances federal road, bridge, and transit projects nationwide. It relies primarily on the federal gasoline tax, which has remained at 18.4 cents per gallon since 1993. Inflation and improved vehicle fuel efficiency have eroded the tax's purchasing power, creating chronic funding gaps that Congress addresses through general revenue transfers.
The House bill attempts to close part of this gap through new fees on electric vehicles and hybrids. These vehicles do not consume gasoline, so they currently avoid fuel tax obligations. Supporters argue that EV and hybrid owners should contribute to road maintenance and upkeep.
However, the CBO's findings suggest these revenue measures fall short of addressing the structural imbalance. The analysis indicates cumulative shortfalls will deepen even with the new fees in place.
This creates a legislative problem for House leaders. The bill faces pressure from both conservatives concerned about spending levels and infrastructure advocates who argue the House proposal does not adequately fund transportation needs. Democrats have criticized the bill for relying on EV fees rather than increasing the gasoline tax on all drivers.
The Senate is developing its own transportation bill and has not yet released its proposal. How Senate negotiations address the trust fund deficit will shape the final legislation. The CBO findings provide ammunition for advocates pushing for more substantial revenue measures, whether through higher fuel taxes, broader EV fees, or alternative funding mechanisms.
Congress must pass a surface transportation bill before current authorizations expire. The