First act was to start process to reset fuel economy standards.
Sean Duffy was officially sworn in as the 20th Secretary of the United States Department of Transportation (USDOT) January 28. Secretary Duffy was administered the oath of office by U.S. Supreme Court Justice Clarence Thomas at the U.S. Supreme Court and was joined by his family.
Upon arrival at USDOT headquarters, Secretary Duffy’s first act was signing a memorandum directing staff to start the process of resetting Corporate Average Fuel Economy (CAFE) standards, which will ultimately lower the price of a car for American consumers and eliminate the electric vehicle mandate.
“I am deeply honored by the trust placed in me by President Trump to lead this important Department and for the Senate in swiftly confirming my nomination,” said U.S. Transportation Secretary Sean Duffy. “We are already hard at work executing the President’s vision to usher in a golden age of transportation by taking immediate action to remove government overreach and lower costs for hardworking Americans. The memorandum signed today specifically reduces the burdensome and overly restrictive fuel standards that have needlessly driven up the cost of a car in order to push a radical Green New Deal agenda. The American people should not be forced to sacrifice choice and affordability when purchasing a new car.”
The memorandum signed by the Secretary directs the Office of the General Counsel, the Office of the Undersecretary for Policy, and the National Highway Traffic Safety Administration to immediately initiate a rulemaking to rescind or replace all existing CAFE standards.
According to the DOT, as a result of the regulatory costs, fuel economy standards have diminished the strength of America’s auto industry and denied Americans the full range of affordable vehicles they need.
The DOT cited data from Cox Automotive:
- From March 2021 to March 2024, the cost of a car increased by a total of 15.5%, from an average of $40,881 to an average of $47,218.
- Current rule requires all passenger cars and light trucks to meet a standard of 50.4 miles per gallon (mpg) in Model Year 2031. This government mandate has dramatically increased the average price of a new car to nearly $48,000, driving up the cost and making it unaffordable for American consumers.
- The price of a car has continued to spiral. In March 2024, of the 275 new-vehicle models available for purchase, only eight had transaction prices below $25,000. By comparison in March 2021, more than 20 vehicles had transaction prices below $25,000.
This direction will implement Executive Order 14148, titled Initial Rescissions of Harmful Executive Orders and Actions, and Executive Order 14154, titled Unleashing American Energy, which were issued by President Trump on January 20.
The association representing U.S. vehicle manufacturers congratulated Duffy on his confirmation.
“Alliance for Automotive Innovation congratulates Representative Duffy on his confirmation,” said John Bozzella, president and CEO of Alliance for Automotive Innovation, in a statement. “The Department of Transportation has extensive jurisdiction over the auto industry – a sector that employs 10 million Americans in all 50 states, builds 10.3 million vehicles a year and drives $1 trillion into the economy annually.
Bozzella concluded, “His leadership at the department over the next few years will help ensure the American auto industry remains healthy and competitive – and in a position to guarantee the country’s economic and national security.”
The National Safety Council (NSC) said in a statement January 28, “Today, the United States Senate confirmed the nomination of The Honorable Sean Duffy as the Secretary of the U.S. Department of Transportation by a vote of 77 to 22. This bipartisan vote signals trust in Secretary Duffy’s public commitment to make transportation a top priority for the Department of Transportation under his leadership.”
According to the NSC, in 2022, 46,027 people died in motor-vehicle crashes. These crashes cost $481.2 billion in estimated losses from wages, medical expenses, property damage and employer costs.
“Strong leadership is needed atop the United States Department of Transportation in order to continue progress toward eliminating roadway deaths by 2050,” said Lorraine Martin, president and CEO of the National Safety Council and chair of the Road to Zero Coalition. “We look forward to working with Secretary Duffy and his team to accomplish this shared goal. Tackling the current traffic safety crisis depends on us working together to accelerate advanced technology, prioritize safe road design programs and train motorists on safe driving behaviors.”
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