The Transportation Freedom Act: Senator Bernie Moreno’s Bold Move to Reshape U.S. Auto Regulations
Introduction
On February 25, 2025, Senator Bernie Moreno (R-OH), a seasoned automotive industry expert and longtime advocate for U.S. car manufacturers, introduced the Transportation Freedom Act (S.711) to the U.S. Senate. This landmark legislation aims to repeal strict emissions regulations, eliminate Corporate Average Fuel Economy (CAFE) standards, and provide substantial tax breaks for American car manufacturers.
The bill has quickly gained traction among industry leaders, auto dealers, and trade organizations, while also facing opposition from environmental groups advocating for cleaner energy solutions. In this article, we break down the key provisions, industry support, and potential impact of this legislation on consumers and the U.S. automotive market.
Key Provisions of the Transportation Freedom Act
The Transportation Freedom Act proposes several sweeping reforms that would reshape the U.S. auto industry:
1. Repealing Multi-Pollutant Emission Standards
The bill would eliminate the EPA’s stringent tailpipe emissions rules for light- and medium-duty vehicles. It also seeks to repeal the next phase of heavy-duty vehicle greenhouse gas emission standards, which many automakers argue have increased vehicle costs.
2. Ending California’s Zero-Emission Mandate
One of the bill’s most controversial aspects is the revocation of California’s ability to set its own vehicle emissions standards. Currently, under the Clean Air Act, California has a waiver allowing it to enforce stricter emissions rules than federal standards. Moreno’s bill would ensure that all Americans, not just Californians, have a say in their vehicle choices.
3. Repealing CAFE Standards
The bill aims to eliminate current Corporate Average Fuel Economy (CAFE) regulations, which mandate automakers to meet specific fuel efficiency targets. Moreno argues that these rules force manufacturers to produce vehicles that consumers do not want, ultimately raising car prices and limiting choice.
4. Implementing New National Passenger Vehicle Standards
To replace the repealed emissions and fuel efficiency rules, the bill proposes a new national regulatory framework that aligns with the interests of American automakers while maintaining environmental responsibility.
5. Massive Tax Incentives for U.S. Auto Workers
One of the most significant incentives in the bill is a 200% tax deduction on wages paid to U.S. auto workers—up to $150,000 per worker. To qualify for these deductions, manufacturers must:
Ensure at least 75% U.S. content in their vehicles.
Not have transferred production outside the U.S. in the past taxable year.
Offer health insurance, profit sharing, and retiree benefits to workers.
Remain neutral in labor organizing campaigns, ensuring fair treatment of employees.
6. Blocking Foreign Dependence on EV Manufacturing
Moreno argues that federal EV mandates have flooded the U.S. market with expensive electric vehicles (EVs) that consumers do not want, while simultaneously benefiting foreign manufacturers—especially in China. By rolling back these mandates, the bill seeks to protect American jobs and ensure U.S.-made cars dominate domestic sales.
Industry Support and Opposition
Who Supports the Bill?
The Transportation Freedom Act has gained widespread support from key automotive players, including:
General Motors, Stellantis, and Toyota – Leading auto manufacturers backing the bill for its pro-business and pro-worker policies.
National Auto Dealers Association (NADA) – Strongly endorses the proposal as a “common sense approach” to reducing regulatory burdens.
American Trucking Associations – Supports the repeal of heavy-duty vehicle emissions regulations that drive up costs for commercial transportation.
Alliance for Automotive Innovation – Backs the bill as a way to ensure regulatory predictability and investment in emissions-reduction technology.
Who Opposes the Bill?
Environmental organizations and clean energy advocates argue that the bill undermines years of progress in reducing greenhouse gas emissions. Many believe that maintaining strong fuel efficiency standards is crucial to:
Fighting climate change and reducing pollution.
Encouraging innovation in the auto sector toward cleaner technology.
Protecting public health by reducing harmful emissions from gasoline-powered vehicles.
The Biden administration has signaled opposition to any rollback of emissions and fuel economy standards, making this a highly contested issue in Washington.
Potential Impact on Consumers and the Auto Industry
Lower Car Prices and Greater Consumer Choice
If passed, the bill could lead to significant reductions in vehicle prices by cutting compliance costs for automakers. Consumers would have more choices beyond EVs, including affordable gasoline-powered cars and hybrids.
Boosting U.S. Manufacturing and Jobs
The tax incentives would encourage manufacturers to invest in American workers and facilities, potentially creating thousands of new jobs in the auto sector.
Environmental Concerns and Market Adjustments
While many argue that relaxing emissions regulations could boost the economy, it could also lead to higher pollution levels, raising concerns among health experts and climate activists.
What’s Next? The Road to Senate Approval
The Transportation Freedom Act has been co-sponsored by several freshman Republican Senators, including Jim Banks (R-IN), Tim Sheii (R-MT), and Jim Justice (R-WV). The bill now faces debate and scrutiny in the Senate, where it will encounter pushback from Democratic lawmakers and environmental groups.
How You Can Get Involved
For those who support the bill, now is the time to contact your Senator and advocate for its passage. If you believe that government regulations have unfairly driven up car prices and hurt American manufacturing, this bill could be a game-changer.
Final Thoughts
Senator Bernie Moreno’s Transportation Freedom Act (S.711) represents a bold shift in U.S. automotive policy, aiming to restore affordability, boost American auto manufacturing, and push back against aggressive emissions mandates. While it has garnered support from major automakers and trade groups, it also faces strong opposition from environmentalists and regulatory agencies.
As the debate unfolds, the future of vehicle regulations in the U.S. hangs in the balance. Will this bill pass and reshape the industry, or will existing environmental policies remain in place? Stay tuned for updates as the legislative process continues.
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