We have some huge news! This directly affects your freedom and your ability to drive your car.
The U.S. Senate voted on a bill to halt the California EV mandate, which requires 80% of new vehicle sales to be electric by 2035 and has been adopted by 11 other states. The outcome affects vehicle options, prices, and fuel choices for drivers nationwide. This is a pivotal moment for the auto industry.
This isn’t just a policy debate; it’s a decision that will ripple through car lots, gas stations, and your wallet. From vehicle prices to fuel choices, the Senate’s move is a game-changer, and you’ll want to stick with me to understand why this matters and what’s next.
On May 22, the Senate passed a resolution with a 51-44 vote to cancel California’s Advanced Clean Cars II (ACC II) regulation, which aimed to phase out new gasoline-only vehicle sales by 2035. The U.S. Senate passed H.J. Res. 87, H.J. Res. 88 and H.J. Res. 89, striking down the three waivers that allowed states to adopt stronger vehicle pollution standards than those required federally. In English, this removes the electric vehicle mandate.
Enabled by a Biden-era Environmental Protection Agency (EPA) waiver, this mandate didn’t just affect California—it influenced a dozen states, including New York, Massachusetts, and Oregon, covering roughly 40% of the U.S. population. The Senate’s decision, following a 246-164 House vote on May 1, 2025, sends the bill to President Donald Trump’s desk, where it’s expected to be signed into law.
This isn’t just about electric vehicles (EVs) versus gas-powered cars. It’s about consumer choice, economic stability, and the future of an industry that employs millions. The Congressional Review Act (CRA), used to repeal the EPA waiver, limits judicial review, making this decision more concrete than an executive action. Senate Majority Leader John Thune, R-S.D., spearheaded the effort, arguing that California’s mandate overstepped federal authority, inflated vehicle costs, and risked straining the nation’s power grid.
California’s plan wasn’t just a West Coast experiment—it set the tone for the auto market nationwide. If this rule had stayed in place, it would have forced manufacturers to only sell EVs in the US. It wouldn't be worth the cost to build one car for half the population and a different car for the other. And this isn't speculation, we've seen statements from the auto manufacturers and know that this was the plan. By repealing this bill it preserves your choice.
Also, EVs come with sticker prices thousands higher than traditional internal combustion engine (ICE) vehicles. For example, the average EV costs about $66,000, compared to $48,000 for a gas-powered car. Federal tax credits of up to $7,500 have helped bridge that gap, but House Republicans are now proposing to eliminate those credits, potentially making EVs even pricier. I'll get back to that in a moment.
Then there’s the infrastructure issue. With only about 64,000 public charging stations nationwide—compared to over 145,000 gas stations—rural drivers and long-distance commuters could face serious hurdles. Thune warned that the mandate could overload the power grid, especially in areas with limited charging options. Imagine being stuck in a small town with no charger in sight. That’s not just inconvenient; it’s a dealbreaker for many.
The American Fuel & Petrochemical Manufacturers (AFPM) President and CEO Chet Thompson and American Petroleum Institute (API) President and CEO Mike Sommers offered these comments: “Congress has made clear that California regulators have no authority to dictate what cars Americans can buy or to ban internal combustion engine vehicles. President Trump can now deliver on a major part of his campaign promise to end EV mandates in the United States. This is a massive win for consumers and working families all across the country.”
The National Automobile Dealers Association (NADA) backed the Senate’s move, arguing that the mandate distorted the vehicle market. NADA President and CEO Mike Stanton stated, “This unrealistic mandate, coupled with an insufficient and unreliable charging infrastructure, would have drastically reduced consumer choice and raised prices for new and used cars and trucks for all Americans.” Even General Motors, once a vocal EV supporter, is reportedly pushing to revoke the mandate after April 2025 EV sales dipped, signaling consumer hesitation.
California isn’t going down without a fight. Governor Gavin Newsom and Attorney General Rob Bonta have vowed to sue the federal government, calling the Senate’s vote “illegal” and a violation of decades of precedent under the Clean Air Act. Newsom said, “Republicans went around their own parliamentarian to defy decades of precedent.”
Bonta agreed, accusing Senate Republicans of “weaponizing” the Congressional Review Act to undermine California’s efforts to curb pollution. The state argues that its waivers are critical for reducing emissions and combating climate change. California’s regulations have historically aggressive, but critics, including Thune, argue that the state’s outsized influence limits consumer choice and burdens automakers with costly compliance.
The Senate’s vote isn’t just about cars—it’s about protecting a $100 billion sector of the U.S. economy. The specialty automotive aftermarket, which relies heavily on ICE technology, supports over 330,000 jobs. By halting California’s mandate, Congress has safeguarded this hub of American innovation, ensuring stability for workers and businesses.
This decision also raises questions about the federal EV push. While the Senate vote targets state-level mandates, the Biden administration’s Corporate Average Fuel Economy (CAFE) standards—raised to 50.4 miles per gallon in 2024—have been criticized as an indirect EV mandate. U.S. Transportation Secretary Sean Duffy told Reuters that these standards “illegally” drove up car prices. Over 120 House Republicans echoed this, arguing that the National Highway Traffic Safety Administration (NHTSA) overstepped its authority by factoring EVs into its calculations.
The Senate’s vote reshapes the auto market, but it’s not the final word. California’s lawsuit could delay or complicate implementation, though the CRA’s limited judicial review strengthens Congress’s position.
For drivers, this means more choices at the dealership. Gas-powered and hybrid vehicles will remain widely available, preserving options for those who can’t afford EVs or live in areas with sparse charging infrastructure.
Back to the $7,500 tax credit: President Trump’s “one big beautiful tax bill” cleared the House of Representatives. Now it has to go to the Senate, where it faces an equally hard fight. And here’s what the auto industry is watching carefully. The legislation, as it stands now, phases out the $7,500 sales rebate for new EVs, the $4,000 rebate for used EVs, and the $40,000 rebate for clean commercial vehicles at the end of this year.
That’s 7 years earlier than they were originally set to expire. Same goes for the $1,000 tax credit for installing a Level II charger in your home. If passed, all this goes away on December 31st. The bill also tacks on a $250 annual federal fee to all EVs, which we talked about last week. Maybe some of this will get changed under reconciliation between the House and Senate bills.
This story is far from over. The Senate also voted 51-45 to cancel EPA waivers for California’s heavy-duty vehicle emissions rules and 49-46 to address nitrogen oxide regulations, signaling a broader push against stringent environmental policies. These votes, combined with the ACC II repeal, reflect a Republican-led effort to prioritize consumer choice and economic stability over aggressive mandates.
But the fight isn’t just in Washington. California’s legal challenge could set a precedent for how states balance local priorities with federal oversight. And with automakers like GM reassessing their EV strategies amid fluctuating demand, the industry is at a crossroads. For now, drivers can expect more choices at the dealership, but costs could rise if EV subsidies end. This story is still unfolding, and its impact will be felt from showrooms to highways.
This is a defining moment for the auto industry, and the stakes couldn’t be higher. Whether you’re a car enthusiast, a daily commuter, or just someone who cares about the future of transportation, this decision affects you. Share this article with friends, family, and fellow drivers, and stay informed.
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Lauren Fix, The Car Coach is a nationally recognized automotive expert, media guest, journalist, author, keynote speaker and television host. A trusted car expert, Lauren provides an insider’s perspective on a wide range of automotive topics and safety issues for both the auto industry and consumers. Her analysis is honest and straightforward.
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