NCSL Praises Bridge Funding, Raises Concerns Around Proposed EV Fees in Surface Transportation Bill

NCSL Praises Bridge Funding, Raises Concerns Around Proposed EV Fees in Surface Transportation Bill

The Honorable Sam Graves
Chair, Committee on Transportation and Infrastructure
U.S. House of Representatives
2165 Rayburn House Office Building
Washington, D.C. 20515

The Honorable Rick Larsen
Ranking Member, Committee on Transportation and Infrastructure
U.S. House of Representatives
2163 Rayburn House Office Building
Washington, D.C. 20515

Re: BUILD America 250 Act

Dear Chairman Graves and Ranking Member Larsen,

On behalf of the National Conference of State Legislatures (NCSL), the nonpartisan organization representing the legislatures of our nation's states, commonwealths and territories, we write to express our appreciation for the significant investment in our nation's transportation infrastructure proposed through the Building Unrivaled Infrastructure and Long-term Development (BUILD) America Act. These investments will help state governments strengthen the arteries that are crucial to our nation's continued prosperity by providing necessary long-term funding certainty.

Of note to states is the massive investment in the nation's bridges, which received a "C" grade in the American Society of Civil Engineers' 2025 Report Card for America's Infrastructure. According to the Department of Transportation, the number of bridges in "fair" condition still outstrips the number of bridges in "good" condition. This long-term infusion of funding and the certainty that it brings, including $75 million per state for five years, distributions through the formula program and the fact that no state will see a decrease in funding from FY 2026 IIJA levels will go a long way towards helping states improve their bridges.

We also want to express a need to work closely with you to further develop certain provisions, most notably, the proposed fees on electric vehicles and plug-in hybrid vehicles. States recognize the need to participate in the user-pay, user-benefit systems that fund our roads, and NCSL has been working with state policy leaders on this issue for several years as states grapple with funding challenges and advancement of technology. According to NCSL, at least 41 states already require a special registration fee for EVs or other non-emission/alternative fuel vehicles. Thirty-four of those states also assess a fee on either plug-in hybrid electric vehicles (PHEVs) or non-plug-in hybrid electric vehicles with combustion engines. However, the proposed timeline for requiring states to collect and remit federal taxes is unclear, especially given the proposal doesn't yet provide specific implementation guidance and allows the FHWA Administrator broad rulemaking privileges around such guidance and implementation funding. This, in conjunction with a federally assessed non-compliance penalty for states, could place states in a situation where they are unable to set up the appropriate systems to collect and remit payments to the federal government before potentially losing federal highway funding.

Additionally, the proposed discretionary grants of up to $2 million per state for implementation and 1% retainment of collected fees for program administration may not be enough and could be an undue burden on already stretched state systems. States encourage Congress to examine innovative ways to capture all system users but ask that the design and implementation of such fee systems be done in close consultation with states. Closer state-federal cooperation can provide more opportunities for the federal government to learn from state success stories, as well as help avoid potential pain points as we work in concert to better our transportation systems and make them fairer for all users.

NCSL thanks you and the committee for your dedication to the nation's infrastructure and your hard work in preparing, writing and marking up this legislation. The substantial increases in bridge funding, as well as increased highway funding, extension of the Railway-Highway Grade Crossings program and a renewed focus on traffic safety will allow states to continue to build better roads and bridges and ensure citizens and commerce flow smoothly and safely. While some items of concern remain, we stand ready to work with you to build the next generation of American infrastructure that will last another 250 years. We look forward to engaging you on this issue. In the meantime, please contact Ben Nasta, NCSL's senior legislative director for transportation, at [email protected] if we can be of any service.

Representative Steve Elkins
NCSL Transportation Committee Co-Chair
Minnesota House of Representatives

Representative Nicole Miller
NCSL Transportation Committee Co-Chair
Oklahoma House of Representatives

Senator Louis DiPalma
NCSL Budgets & Revenue Committee Co-Chair
Rhode Island Senate

Representative Troy Waymaster
NCSL Budgets & Revenue Committee Co-Chair
Kansas House of Representatives

Senator Dina Neal
NCSL State and Local Taxation Task Force Co-Chair
Nevada Senate

Senator Tim Reed
NCSL State and Local Taxation Task Force Co-Chair
South Dakota Senate

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