What Happened?

The federal fund that pays for America's highways could hit zero by 2028, according to a Congressional Research Service report released Sept. 8. Without action, federal highway dollars to states could dry up or shrink sharply.

The report examines the BUILD America 250 Act, a bill introduced by Rep. Sam Graves, R-Mo., in May that would set highway funding for the next five years. The bill cleared its first hurdle in committee and could get a full House vote.

Why Does it Matter to Me?

The Highway Trust Fund (HTF) is the main account Congress uses to pay for road construction, bridge repairs, and highway safety programs across every state. When it runs short, states and local governments face cuts to projects already in the pipeline.

The HTF runs on fuel taxes, which have not been raised since 1993. The CRS report found those taxes have lost 74 percent of their purchasing power over that time. Put another way, a dollar collected at the pump in 1993 buys about 26 cents' worth of road work today.

The BUILD America 250 Act would authorize $75 billion a year in highway contract authority, about seven percent more than current funding levels. But if you own an electric vehicle or plug-in hybrid, you would face a new federal registration fee:

  • Electric vehicle owners: $130 a year, rising to $150 by 2032
  • Plug-in hybrid owners: $35 a year, rising to $50 by 2031

About 4.5 million light-duty electric vehicles and 1.5 million plug-in hybrids were registered in the United States as of 2024, the report notes.

Both Sides, Now

Supporters of the BUILD America 250 Act argue the EV fees help replace fuel-tax revenue lost as more drivers switch away from gas-powered cars. Because EV drivers pay no fuel taxes, they currently contribute nothing to the HTF even as they use the same roads.

Critics point to a structural gap in the bill. The previous highway law, the Infrastructure Investment and Jobs Act passed in 2021, included $47 billion in guaranteed multiyear funding drawn directly from the U.S. Treasury's general fund. The BUILD America 250 Act drops that backstop entirely, leaving new programs dependent on Congress passing separate spending bills each year, a process that frequently stalls.

The Trump administration has also reshaped some highway priorities since January 2025. Following executive orders on climate and diversity programs, the Federal Highway Administration suspended funding for certain initiatives. A federal judge ruled in January 2026 that suspending obligations for the National Electric Vehicle Infrastructure Program violated federal administrative law, and that legal dispute remains unresolved.

What Happens Next?

The BUILD America 250 Act still needs a full House vote, then Senate passage, and the president's signature before it becomes law. Congress faces a hard deadline: the CRS report projects the HTF balance approaches zero in fiscal year 2028, which begins Oct. 1, 2027. If no new law is in place by then, Congress would need to either raise revenue, transfer money from the general Treasury, or cut highway programs. No Senate vote is currently scheduled.

---

Spot something wrong? Report an issue with this article