In the midst of the ceasefire/bomb Iran, reconciliation 3/Save America Act, and are there any senators left chaos, it is easy to believe that none of the usual business is being handled. But the most recent highway bill – the BUILD America 250 Act, known more formally as the Surface Transportation Reauthorization – is proof that is not the case. And that may be the problem.

Recall that the Highway Trust Fund (HTF) is an accounting identity that keeps track of federal spending and revenue for surface transportation (highways and mass transit). Money flows into the HTF from the excise tax on gasoline and diesel fuel. This accounts for nearly 85 percent of the revenue. The remainder is from a sales tax on tractors and heavy trucks, an excise tax on tires for heavy vehicles, and an annual use tax on those vehicles.

The money flows out for highway and mass transit programs, which account for about 25 percent of total spending on roads and highways. State and local governments spend the rest.

Under current law, the HTF shows cumulative shortfalls of $86 billion and $45 billion by 2031 for the highway and transit accounts, respectively. So, business as usual is to spend more than is available. And the new highway bill is more of the same. The Congressional Budget Office (CBO) found that cumulative shortfalls projected for the five years under the bill would be $99.5 billion for the highway account and $48.2 billion for the transit account. More red ink.

It gets better. The red ink grows even though the bill contains new taxes — new fees on electric vehicles (EVs) and hybrids. As written, the fees would be set at $35 for hybrids and $130 for EVs at the start of fiscal 2027. Beginning in 2029, they would increase by $5 each year and would be capped at $50 per year for hybrids and $150 for EVs.

This is not important because of the revenue raised. CBO puts the increased revenues at about $12 billion over the fiscal 2026–2036 period. What is more important is the character of these revenues. Unlike a gas tax, there is no way to plausibly call these registration fees user fees for highway use. They aren’t even a “use tax” related to the value of the vehicle. They are simply a money grab imposed arbitrarily on EVs and hybrids and set solely at the whim of lawmakers. With that precedent, what could go wrong?

So, relax. The policy chaos has not distracted Congress one bit.