The U.S. transportation sector is undergoing major policy changes following President Donald Trump’s return to office in 2025. His administration has reversed electric vehicle (EV) initiatives, reduced funding for transportation research, and removed several regulatory measures. These shifts mark a clear departure from the Biden administration’s approach and signal a new direction for mobility and infrastructure in the country.
EV Policy Reversal: A Shift Back to Gas-Powered Fleets
The Trump administration has significantly changed the federal government’s approach to EV adoption. Under Biden, agencies invested heavily in EV infrastructure and fleet electrification. However, the new administration is taking the following steps:
- Cutting Charging Infrastructure – The General Services Administration (GSA) plans to deactivate many EV charging stations installed at federal properties, arguing they are costly and rely on foreign supply chains.
- Liquidating the EV Fleet – Thousands of EVs purchased under Biden will be auctioned or reassigned, with a return to gasoline-powered government vehicles.
- Rolling Back Emissions Standards – The administration is easing federal fuel economy requirements, citing concerns over costs for automakers and consumers.
These changes align with Trump’s broader focus on domestic oil and gas production and a market-driven energy policy. The administration has also questioned EV tax credits, with some officials calling for their removal.
Deregulation: Reducing Federal Oversight
The administration is focused on reducing federal regulations to speed up infrastructure projects and give states more control over transportation policy. Key actions include:
- Eliminating Some Environmental Reviews – A rule requiring extensive environmental impact studies for large projects is being reversed. This is expected to accelerate road and bridge construction.
- Shifting Authority to States – State governments will have more control over transportation decisions, which could lead to varied policies across the country.
- Reducing Federal Funding for Public Transit – The administration is scaling back support for urban transit projects, encouraging private sector involvement instead.
Budget Cuts to Transportation Research
The Trump administration’s budget significantly reduces funding for transportation research and development:
- Cutting DOT Research Grants – Funding for autonomous vehicles, smart traffic systems, and sustainable transit solutions is being reduced.
- Eliminating ARPA-I – The Advanced Research Projects Agency-Infrastructure, created under Biden, is being shut down.
- Prioritizing Traditional Infrastructure – The focus is shifting toward road construction, bridge repairs, and airport upgrades instead of emerging technologies.
Impact on States and Cities
With less federal involvement, states and cities will have to navigate these policy changes independently:
- California’s EV Regulations – California plans to enforce strict emissions rules despite federal rollbacks, setting up potential legal challenges.
- New York’s Congestion Pricing Debate – The administration opposes congestion pricing, arguing it unfairly impacts drivers.
- Texas and Florida’s Infrastructure Expansion – These states are prioritizing road construction and highway projects with fewer federal restrictions.
Guidance for Logistics and Supply Chain Leaders
These policy changes create both challenges and opportunities for transportation, logistics, and supply chain companies. Businesses must adjust their strategies to remain competitive.
1. Adjust Fleet Management Plans
- Plan for Longer Use of Gas-Powered Vehicles – With reduced EV mandates, businesses should ensure internal combustion engine (ICE) fleets remain efficient.
- Secure Fuel Supply Agreements – The renewed focus on oil and gas may lead to price fluctuations. Long-term contracts can help manage costs.
- Monitor State Regulations – Some states will continue aggressive EV policies. Companies operating nationwide must track different rules and adapt accordingly.
2. Leverage Deregulation for Efficiency
- Take Advantage of Faster Infrastructure Approvals – Fewer environmental reviews mean road and bridge projects will move quicker, improving freight routes.
- Engage with State Governments – Since states will have more control, businesses should participate in state-level transportation planning.
- Optimize Routes to Avoid Urban Congestion – With less federal funding for public transit, some cities may see increased congestion. Dynamic routing will be essential.
3. Adapt to Research Funding Cuts
- Monitor Private Sector Innovation – With reduced federal funding, businesses should look to private companies investing in AI, automation, and alternative fuels.
- Invest in Cost-Saving Technology – Fuel efficiency and logistics software will be critical in managing costs under the new policy landscape.
- Explore Public-Private Partnerships – As cities seek private investment for transit projects, logistics firms may find new collaboration opportunities.
The transportation landscape is changing. Supply chain leaders should act now to adjust fleet strategies, use deregulation to their advantage, and invest in efficiency. Engage with state policymakers, assess infrastructure needs, and explore technology solutions. Businesses that adapt will stay ahead—those that do not will face increasing challenges.
