Sean Duffy, the newly confirmed U.S. Transportation Secretary, has swiftly implemented significant policy changes since his confirmation by the Senate on January 28, 2025, with a vote of 77 to 22. Duffy's first actions have been marked by a broad rollback of regulatory initiatives from the previous administration, aligning with the Trump Administration's executive orders.
One of the key decisions made by Secretary Duffy was to direct the National Highway Traffic Safety Administration (NHTSA) to propose a reset of the Corporate Average Fuel Economy (CAFE) standards for model years 2027-2032. This move is aimed at reversing the aggressive fuel economy standards set by the Biden administration, which had effectively forced automakers to shift production rapidly from internal-combustion-engine vehicles to electric vehicles (EVs). Duffy argued that these standards were not achievable without a significant shift to EVs, thereby limiting consumer choice and imposing undue costs on Americans[2][4].
In addition to the CAFE standards, Duffy has also rescinded a rule that required state transportation departments to measure carbon dioxide emissions on federally supported highways. This decision is part of a larger effort to eliminate Biden-era programs related to climate change, Diversity, Equity, and Inclusion (DEI) initiatives, racial equity, and environmental justice. Duffy signed a “Woke Rescission” Memorandum to this effect, emphasizing the need for merit-based policies and sound decision-making over political ideologies[2].
The Environmental Protection Agency (EPA) is also expected to review or rewrite limits on vehicle tailpipe pollution, which had been set to boost electric vehicle sales. This includes reassessing a 2022 decision that authorized California to set its own emissions limits. These changes have already impacted the strategies of automakers, with Stellantis NV postponing its first all-electric Ram pickup and Volkswagen deciding not to bring its ID.7 electric sedan to the U.S. market. Analysts have subsequently lowered their forecasts for electric and plug-in hybrid vehicle sales through the decade[2].
Secretary Duffy has also emphasized his commitment to innovation within the Department of Transportation. During his swearing-in ceremony, he highlighted the importance of creating rules that support innovation in areas such as drones, autonomous vehicles, and electric vertical takeoff and landing (eVTOL) aircraft. He stressed the need for the U.S. to lead in these innovative spaces and ensure that regulatory frameworks are conducive to this goal[2].
Furthermore, Duffy has addressed concerns about Boeing's safety issues and the shortage of air traffic controllers. He has promised to take a tough stance on Boeing, ensuring the company adheres to strict safety standards. Additionally, he plans to re-evaluate fines on space launches, which have affected companies like Elon Musk’s SpaceX[5].
The Trump administration's removal of DEI programs from the federal government has also been reflected in Duffy's approach to hiring at the Department of Transportation. He has stated that hiring decisions will be based on merit, aiming for excellence and ensuring the best people are in key positions. This aligns with the administration's broader policy of eliminating DEI initiatives across federal agencies[5].
Overall, Secretary Duffy's early actions signal a significant shift in transportation policy, prioritizing consumer choice, economic analysis, and merit-based decision-making over the regulatory and environmental focus of the previous administration.
