EXCLUSIVE — Sen. Bernie Moreno (R-OH), an auto-dealer-turned-politician, will unveil Tuesday his first piece of legislation giving hefty tax breaks to automakers and rolling back Biden-era regulations that the first-term lawmaker says would reverse the yearslong trend of rising vehicle prices.
Moreno’s Transportation Freedom Act, first shared with the Washington Examiner, would repeal Biden-era emissions regulations, including electric vehicle standards, and create hefty tax breaks for American auto manufacturers in a quest to drive down vehicle prices, which have soared in recent years.
The measure has backing from other Republican senators, a trio of auto giants, and industry advocacy groups.
“Thanks to liberal bureaucrats who want to mandate what cars Americans can drive, states like mine are riddled with car lots filled with expensive EVs people simply don’t want and dormant factories that once employed millions of American workers,” Moreno said. “The only winner is China. It’s time to make sure cars sold in America are actually made in America and give Americans the freedom to choose the cars they actually want to drive.”
The proposal would create tax breaks for auto companies with a 200% payroll tax deduction for annual salaries up to $150,000 and prevent money saved from being used for stock buybacks.
It would also roll back Biden-era regulations restricting tailpipe emissions that would mandate at least 35% of new light- and medium-duty vehicles sold be all-electric by 2032, eliminate other emissions rules for heavy-duty trucks, and revoke California’s waiver for a 100% EV mandate by 2035. EVs accounted for less than 9% of all new car sales last year.
Moreno contends that the measure would help root foreign competition and lower sticker prices on dealership lots with less costly red tape and more automaker tax breaks.
President Donald Trump signed an executive order on his first day back in office nixing the so-called EV mandates, but Moreno’s legislation would codify the move into law and avoid likely drawn-out legal battles over Trump’s actions.
The long-standing federal fuel economy program that has set fuel efficiency standards for vehicles since 1975 would be repealed and replaced under Moreno’s bill with new, yet-to-be-determined standards. Under the bill, standards for fuel efficiency and emissions would be created for 2027-2035 to offer automakers what Moreno describes as regulatory stability.
The legislation is backed by General Motors, Toyota, and Stellantis, which owns brands such as Jeep, Dodge, Ram, and Fiat, and industry groups Alliance for Automotive Innovation, American Trucking Associations, and the National Automobile Dealers Association. The alliance represents dozens of the world’s leading automakers, including Ford which is based in the Detroit metropolitan area, along with Stellantis and GM.
Original co-sponsors in the Senate are all Republicans: Sens. Jim Justice (R-WV), Tim Sheehy (R-MT), and Jim Banks (R-IN).
“The auto industry has been whipsawed by shifting emission regulations for decades,” Mark Templin, the executive vice president and chief operating officer of Toyota, said in a statement. “These swings have hurt auto companies, auto dealers and auto workers, ultimately driving up the cost of automobiles in America. The Transportation Freedom Act is a commonsense approach that will provide regulatory predictability. This will allow the auto industry to invest wisely in emission reduction technologies, while providing affordable choices for consumers.”
Before being elected to the Senate in 2024 in one of the most closely watched races in which he defeated former Democratic Sen. Sherrod Brown, Moreno built a luxury car business empire that, at one point, featured dozens of dealerships. He sold his remaining businesses during the campaign amid scrutiny about conflicts of interest.
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It will be up to Senate GOP leadership whether Moreno’s bill receives valuable committee and floor time, but it likely would not be anytime soon unless it is lumped into broader must-pass measures. The upper chamber is focused on confirming Trump’s nominees and avoiding a government shutdown next month.
Moreno’s auto bill marks his fourth piece of legislation since becoming a senator in early January. The others have centered on illegal immigration, the Internal Revenue Service, and establishing a “uniform English language rule for naturalization.”
