Sean Duffy, President-elect Donald Trump‘s nominee to lead the U.S. Department of Transportation (DOT), reportedly wants electric vehicle owners to pay for using roads.
What Happened: Duffy revealed his opinion at his confirmation hearing on Wednesday before the Senate Committee, Reuters reported. Duffy also acknowledged that implementing the move would be “challenging.”
“They should pay for use of our roads,” Duffy said. “How to do that, I think, is a little more challenging.”
Revenue for federally funded road repairs is collected through taxes on diesel and gasoline, Reuters noted. As EV owners do not pay taxes for either of these two commodities, they do not contribute to the revenue.
However, in certain states like Georgia and Illinois, EV drivers pay fees to cover the costs of road repair.
Duffy on Wednesday also pledged to maintain rigorous oversight of troubled planemaker Boeing Co. BA and continue safety investigations into Elon Musk‘s EV giant Tesla Inc. TSLA if confirmed.
Why It Matters: Current regulations pertaining to EVs are under question under the incoming Trump administration. Trump, during his Presidential campaign, swore to end what he termed “the electric vehicle mandate.”
In November, it was also reported that Trump’s transition team is planning to end the $7,500 consumer tax credit for purchasing EVs under President Biden’s Inflation Reduction Act (IRA).
Duffy’s attempt to charge EV drivers for road use, however, cannot be implemented by the Department of Transportation alone and would instead require it to work with Congress and implement new legislation.
If confirmed, Duffy would oversee critical agencies including the FAA, NHTSA, and Federal Railroad Administration.
Check out more of Benzinga's Future Of Mobility coverage by following this link.
Read Next:
Photo courtesy: Shutterstock
© 2025 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.