The House’s highway bill is already hitting major roadblocks.
For one, it’s unclear if the bill can pass the House. Many Democrats don’t like the proposed $130 annual registration fee for EVs. The new fees for EVs and hybrids are also generating blowback from conservative circles beyond the Hill, who are framing them as new car taxes. Florida Republican Gov. Ron DeSantis is among the opponents. Plus, Hill conservatives are resistant to the bill’s $580 billion price tag.
Some Republicans don’t like the rail safety measure added during the markup. The measure was a White House priority. President Donald Trump’s legislative affairs team went as far as to whip committee members to support the amendment. House GOP leaders have said the provision makes it harder to pass the bill on the floor.
Still, 11 Republicans, including House Transportation and Infrastructure Committee Chair Sam Graves (R-Mo.), voted against the amendment.
Another House challenge. House Ways and Means Committee Republicans need to decide whether to hold a markup on sections of the bill that fall under their panel.
The problem for the Ways and Means panel is that holding a markup would involve dealing with the most politically fraught piece of the reauthorization: the gas tax. Hill Republicans have been cool to the idea of a gas tax holiday even as prices soar, but it’s harder to ignore Trump’s desire for a suspension when taking up the tax itself. Voting for a gas tax extension when the average price per gallon is $4.32 is difficult in itself.
A markup could also serve as a venue for House Democrats to push back on EV fees and seek a gas tax holiday through amendments, putting the GOP in an uncomfortable spot and turning it into a partisan ordeal.
Ways and Means Republicans have started discussing options with committee members. That will likely continue when the House returns this week.
The Senate. Negotiators on the Senate Environment and Public Works Committee have said talks are going well, but they need input from other chairs and Senate leadership.
Sen. Sheldon Whitehouse (R.I.), the panel’s top Democrat, said before recess that he and the committee’s chair, Shelley Moore Capito (R-W.Va.), need the other committees with jurisdiction to engage. Whitehouse said they’re also waiting to hear from Senate GOP leadership on the topline so they can proceed.
The Senate Commerce, Banking and Finance Committees also each have a piece of the package. There’s not much time left to coordinate.
The permitting reform curveball. The White House is closely monitoring the permitting reform talks in the Senate. If those talks wrap up, the administration would be open to including the product in the highway bill.
Congress has until Sept. 30 to renew the highway and transit programs that fund much of the nation’s roads, bridges and public transportation systems.
