Sponsors (17)
Introduced April 10, 2025 by Troy Balderson · Last progress April 10, 2025
The bill combines strong incentives and worker benefits to promote U.S. auto manufacturing and short-term consumer savings, but does so by limiting state authority and weakening or complicating vehicle emissions and EV requirements—trading potential near-term economic relief and industry alignment for higher fiscal costs, regulatory uncertainty, and substantial risks to air quality, public health, and long-term emissions goals.
Transportation and auto-manufacturing workers gain higher wages, profit-sharing, guaranteed retirement or 401(k) contributions, and access to platinum-level group health coverage.
Automakers that meet U.S. production and benefit requirements receive a large wage-based tax deduction (200% of eligible wages), creating a strong financial incentive to retain or grow domestic manufacturing jobs.
Tighter fleet-average fuel economy and GHG targets for 2027–2035 can reduce fuel consumption and lower gasoline costs for drivers over time.
Urban and other communities (including children and seniors) would face worse air quality and higher public-health risks if stricter tailpipe-emissions limits are invalidated or delayed.
The bill slows the transition to zero- and low-emission vehicles—by limiting EV production/sales mandates and delaying stricter standards—raising long-term greenhouse-gas emissions, worsening climate damages, and slowing EV market and infrastructure jobs growth.
Revoking state waivers and preempting stricter state standards removes subnational policy flexibility, invites legal challenges, and undermines states’ ability to address local air-quality and climate concerns.
Based on analysis of 8 sections of legislative text.
Creates a new large wage-based tax deduction for qualifying automakers, nullifies recent EPA/NHTSA rules, strips state waiver authority, and orders new federal CAFE/GHG rules with constraints.
Creates a large package of changes for the auto sector: a new federal tax deduction aimed at qualifying automobile manufacturers that meet U.S. production, wage, benefits, and labor-neutrality tests, and major rollbacks of recent federal vehicle emissions and fuel-economy rules. It also strips states of authority to adopt their own vehicle-emissions standards, voids previously issued waivers (including California’s ZEV waivers), and orders the Department of Transportation and EPA to issue new CAFE and GHG standards for model years 2027–2035 within 180 days under specific economic and technology constraints. The tax provision allows a deduction equal to 200% of eligible wages up to $150,000 per employee (with strict eligibility and certification requirements). The regulatory provisions immediately remove several final EPA and NHTSA rules, eliminate the Clean Air Act waiver process that let states set different standards, and require new federal standards that cannot mandate electric vehicle production or assume dedicated-electric baselines.