Sean Duffy, the newly confirmed U.S. Secretary of Transportation, has swiftly implemented significant policy changes since his confirmation by the Senate on January 28, 2025, with a vote of 77 to 22. Duffy, a former Congressman from Wisconsin’s 7th District and host of the Fox Business show “The Bottom Line with Dagen and Duffy,” has hit the ground running with a series of decisions that reflect the Trump administration’s executive orders and policy directions.
One of Duffy's first actions was to issue a new order and memorandum on January 29, 2025, outlining substantial policy shifts. These changes include a broad rollback of regulatory initiatives from the prior administration, particularly those related to climate change and environmental regulations. Duffy has directed the rescission of a rule that required state transportation departments to measure carbon dioxide emissions on federally supported highways, arguing that such measures were not within the scope of the Department of Transportation (DOT)[2].
Duffy has also ordered a review of fuel-economy standards for vehicles from the 2022 model year onward. The Biden administration's rules had mandated that automakers achieve an average of 50.4 miles per gallon across their new-car fleets by the 2031 model year. Duffy's move to reset these Corporate Average Fuel Economy (CAFE) standards for model years 2027-2032 is seen as a significant step away from the previous administration's push for rapid electrification of the nation's motor vehicle fleets[4].
Additionally, Duffy signed a “Woke Rescission” Memorandum, aiming to eliminate Biden-era programs related to climate change, Diversity, Equity, and Inclusion (DEI) initiatives, racial equity, and environmental justice. This move aligns with the Trump administration's broader effort to remove DEI programs from the federal government, with the DOT and FAA already removing mentions of DEI from their websites[2][5].
These policy shifts have immediate implications for the automotive industry. Automakers such as Stellantis NV have postponed plans for their first all-electric Ram pickup and have pulled back from layoffs at a Jeep plant in Ohio. Volkswagen has announced it will no longer bring its ID.7 electric sedan to the U.S. market. Analysts at BloombergNEF have adjusted their forecasts, now expecting plug-in models to represent one-third of total U.S. sales by 2030, down from the previous projection of 48%[2].
Duffy has also emphasized his commitment to innovation within the DOT, highlighting areas such as drones, autonomous vehicles, and eVTOLs (electric vertical takeoff and landing aircraft). He has pledged to ensure that the U.S. remains at the forefront of transportation innovation, creating an environment conducive to technological advancements[2].
During his confirmation hearing, Duffy addressed several key issues, including Boeing's safety concerns, air traffic controller shortages, and consumer regulations from the Biden era. He promised to apply “tough love” to Boeing and to re-evaluate fines on space launches that have affected companies like Elon Musk’s SpaceX[5].
Overall, Secretary Duffy's early actions signal a marked shift in transportation policy, focusing on economic analysis, cost-benefit considerations, and a reduction in regulatory burdens, particularly those related to environmental and social initiatives. These changes are expected to have far-reaching impacts on various sectors, from automotive manufacturing to air travel and technological innovation.
