The U.S. House of Representatives passed a sweeping budget bill Thursday evening that includes a controversial provision to end federal electric vehicle (EV) tax credits as of September 30, 2025.

The legislation, approved by a narrow 218-214 vote, reflects a growing partisan divide over climate policy and federal subsidies. The bill now moves to the Senate, where it is expected to face intense debate and potential amendments.

Under the bill, the $7,500 EV tax credit, which has been a cornerstone of the Biden administration’s clean energy agenda, would be terminated at the end of the federal fiscal year. The move is expected to impact both automakers and consumers, particularly as the EV market remains in a transitional phase.

House Republicans, who pushed for the credit's elimination, argue that the subsidy disproportionately benefits wealthy buyers and distorts market dynamics.