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| By Sam Ogozalek and Chris Marquette | Presented by The American Public Transportation Association | | |
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— It’s a new, uncertain era in Washington as President-elect Donald Trump returns. Here’s what “Day One” could mean for transportation — and the Biden administration’s legacy. — Electric vehicle fees, ending a tailpipe emissions rule and more: House Budget Committee Republicans have a long list of ideas to pay for reconciliation. — SpaceX must investigate the Starship explosion over Turks and Caicos, the FAA said. IT’S MONDAY: You’re reading Morning Transportation, your Washington policy guide to everything that moves. We’re glad you’re here. Send tips, feedback and song lyrics to Sam at sogozalek@politico.com, Chris at cmarquette@politico.com and Oriana at opawlyk@politico.com and follow us at @SamOgozalek, @ChrisMarquette_ and @Oriana0214. “I’m runnin’, I’m runnin’/ I’m runnin’ down the proud highway.” Want to receive this newsletter every weekday? Subscribe to POLITICO Pro. You’ll also receive daily policy news and other intelligence you need to act on the day’s biggest stories.
| | | | A message from The American Public Transportation Association:
Buses and trains are a familiar sight in our daily lives, but have we stopped to think about their economic impact? Public transportation does more than take us from place to place. It boosts our economy by generating thousands of good-paying public- and private-sector jobs – from system operators to manufacturers of transit parts. APTA is looking forward to working with the new Congress to use investments in public transit as a catalyst for economic growth. | | | | | A NEW ERA: In Washington, there’s a sense of uncertainty as the first day of the second presidential term for Donald Trump dawns. Trump has promised a slew of “Day One” actions — but what does that mean in practice? The reality is this: as Jan. 20 winds down, and the clock strikes midnight, the federal government could already be on its way to a dramatic reshaping — perhaps at the expense of Joe Biden’s legacy. That includes his administration’s record on transportation. EVs, EVs, EVs: As soon as he returns to the White House, Trump says he will end the federal electric vehicle “mandate.” There really isn’t any single mandate, and changing most of what Biden has put in place probably can’t be done in a day. But Trump can begin the process, which will no doubt kick off lengthy rulemakings, as POLITICO’s energy team notes. — In the past, he’s also targeted the Inflation Reduction Act’s $7,500 EV tax credit for buyers. Yet Congress would have to repeal that program. (He could roll back the government’s ongoing electrification of its fleet, like what the Postal Service is undertaking.) — Also of potential interest: Trump has said his new team will quickly release a report on the spate of drone sightings that alarmed lawmakers and residents last year, especially in New Jersey. LOOKING AHEAD: Your MT team has spent the last several months documenting what Trump 2.0 could mean for interests from airlines to freight rail, as well as some of the challenges it will face — like finding a new FAA administrator. (Current chief Mike Whitaker leaves today.) Among the highlights: — A litany of Biden-era regulations are vulnerable, including a rule mandating that certain railroads maintain two people on trains and a requirement that airlines disclose add-on fees at the time of purchase. Oriana and Chris have more here. — Elon Musk, Trump’s new cost-cutting buddy, could hold enormous sway over two agencies that regulate his companies: the FAA and NHTSA, which oversee SpaceX and Tesla, respectively. The president-elect has tapped him to help run a regulation-slashing initiative, the so-called “Department of Government Efficiency.” — In the Biden administration’s waning days, it has filed several lawsuits across a range of topics, which the Trump team could simply choose to no longer prosecute. That includes one lodged just five days ago against Southwest Airlines over “chronically delayed” flights, Chris reports.
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LOOKING FOR OPTIONS: A memo from House Budget Committee Republicans, obtained by POLITICO, lays out several areas for potential offsets to pay for the GOP’s upcoming reconciliation legislation. Chris and Sam have the story. Among the ideas: — A new road-use fee on electric vehicles to pay into the Highway Trust Fund. The committee had no revenue estimates for this action. — Scrapping the EPA’s tailpipe emissions rule and DOT’s regulation on fuel economy standards, known as CAFE, which the document says would generate $111.3 billion in savings over 10 years. — Imposing limits on some advanced appropriations in the 2021 infrastructure law for “duplicative” programs eligible for competitive grants such as bike paths, EV charging stations, Amtrak and others. The panel had no estimate on how much this might save.
| | ORDERING INQUIRY: SpaceX must investigate what caused its Starship craft to explode as it ascended toward space last week — and its launches will be put on hold until regulators can ensure there is no risk to the public. Sam has the details. No injuries were reported, but the FAA is examining possible property damage on Turks and Caicos. SpaceX said initial data indicate a fire started on board during the test flight, which is the seventh such launch for Starship. Musk, on X, posted a video of the debris streaking across the sky and wrote, with a star emoji: “Success is uncertain, but entertainment is guaranteed!” (SpaceX has vowed to learn from the incident and cooperate with the FAA.)
| | | | A message from The American Public Transportation Association:   | | | | | SWAN SONG: In his last official speech Friday, Biden’s DOT secretary, Pete Buttigieg, said he plans to support mayors in “any way” he can — but added: “I haven’t decided what shape that will take.” During Buttigieg’s comments at the U.S. Conference of Mayors Annual Winter Conference, he also touted the 2021 infrastructure law and said every form of transportation in America “is in better condition.” — “If I were to visit three of our projects every day for the rest of my life, I still would not live long enough to see them all,” Buttigieg said. He noted that over 207,000 miles of roadway, and more than 12,300 bridges, are being patched up — or rebuilt. “I could go on and on and on,” he said.
| | TAKING IT TO COURT: The Alliance for Automotive Innovation sued the Biden administration Friday, seeking to repeal NHTSA’s automatic emergency braking, or AEB, rule. The regulation would require all new passenger cars and light-duty trucks to have the technology by September 2029 and is projected to save 360 lives and prevent 24,000 injuries per year. The alliance said automakers in 2016 voluntarily agreed to deploy AEB systems on all new vehicles by 2025 “and have already met that commitment.” Chris has the details. — The litigation is “about ensuring a rule that maximizes driver and pedestrian safety and is technologically feasible,” the group said in a statement. NHTSA said it generally doesn’t comment on pending lawsuits. ENGINE ISSUES: NHTSA said Friday it has opened a preliminary investigation into reported power loss in GM trucks and SUVs with L87 V8 engines. The agency said it has received 39 complaints describing the issue, and the inquiry will cover an estimated 877,000 vehicles. Engine failure may lead to an increased risk of a crash resulting in injury or property damage, NHTSA said. The probe includes several different types of vehicles and model years. The full list can be found here.
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— “How to navigate D.C. during Donald Trump’s inauguration.” Washington Post. — “American Airlines Accused of Discrimination by Interracial Couple.” New York Times. — “What to Know About Plane Maintenance After the South Korean Crash.” New York Times. — “Electric Vehicle Sales Have Stumbled. What Went Wrong?” Bloomberg. — “US agency sues two automakers, alleging discrimination and harassment.” Reuters. — “At aviation meeting, ESG takes backseat to jet shortages.” Reuters. — “US auto safety regulator closes probe into nearly 7,000 Fisker electric SUVs.” Reuters. — “China kicks off subsidised auto trade-ins.” Reuters. — “Tesla built Musk’s vast wealth through climate credits. Trump may end them.” E&E News. — “Get ready for Trump’s executive order onslaught.” POLITICO Pro. — “House Republicans mull including 10 percent tariff in reconciliation bill.” POLITICO Pro.
| | | | A message from The American Public Transportation Association: An investment in public transportation is more than a financial allocation — it's a commitment to fueling America’s economic progress.
Public transit doesn't just employ over 430,000 workers and support millions of private sector jobs, it fortifies the U.S. economy by seamlessly linking workers to job opportunities, customers to markets, and communities to avenues of growth. With every dollar dedicated to public transit, we witness a remarkable return of $5 in economic benefits.
Investing in public transportation means investing in our economy – and the workers who drive it. From urban centers to rural communities, federal investments in public transportation benefit everyone by creating jobs, supporting businesses and manufacturers, and driving innovation to bring down long-term costs for transit systems.
America never stops moving forward, so let’s keep U.S. industries competitive, productive, and on track for success by continuing smart investments in public transportation. Let’s rethink the economic impact of public transit. | | | | |
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