agent Entrepreneur logo
MenuMENU
SearchSEARCH

Congress Axes California Gas Car Ban

End around body’s own guardrails sets stage for legal showdown with influential state over clean energy.

May 23, 2025
Congress Axes California Gas Car Ban

The Trump administration is rolling back multiple Biden-era programs designed to increase electric-vehicle adoption to ease pollution, including funding to states for public chargers. 

Credit:

Pexels/Kindel Media

2 min to read


The U.S. Senate employed an unconventional method to jettison California’s mandate that all new vehicles sold in the state be zero-emission by 2035, ignoring its parliamentarian and the federal government’s auditor to push the vote through.

The action, supported by automakers and the oil and gas industry, has broad repercussions because about a dozen other states had followed California in adopting similar laws to boost clean vehicle fuels in efforts to cut pollution.

Ad Loading...

The Biden administration granted Environmental Protection Agency waivers for California’s mandate in one of multiple waivers in the decades since passage of the 1970 Clean Air Act due to the state’s historically high air pollution. This was the first time Congress nixed one of the waivers.

California Gov. Gavin Newsom and Attorney Gen. Rob Bonta vowed to file a lawsuit over the Senate vote, Bonta saying Senate Republicans were “bending the knee to  President Trump once again.” Bonta called the Senate’s use of the Congressional Review Act to nix a state law “weaponization” of the exception.

The CRA allows the body to scuttle a federal law via a simple majority. The Government Accountability Office, though, says the waivers for California don’t apply because they’re not national. GOP lawmakers justified circumventing that direction by saying multiple states were following in California’s tire treads on the matter, making the waivers a national issue.

Automakers and others say California’s timeline for alternative-fuel vehicle sales is unrealistic, and the state’s own auto dealers association says there’s not enough consumer demand to meet it anyway. 

“The fact is these EV sales mandates were never achievable. Automakers warned federal and state policymakers that reaching these EV sales targets would take a miracle, especially in the coming years when the mandates get exponentially higher,” said John Bozzella, president and CEO of the automaker trade group Alliance for Automotive Innovation.

Ad Loading...

Meanwhile, some auto industry watchers and others say Trump administration rollbacks of clean-energy programs would forfeit innovation strides to China.

“We won’t stand by as Trump Republicans make America smoggy again – undoing work that goes back to the days of Richard Nixon and Ronald Reagan – all ceding our economic future to China,” said Newsom, who called the Senate’s vote illegal.

The Trump administration, which is expected to sign the Senate measure, has already cut funding to states for electric-vehicle charging infrastructure, the lack of which remains the primary hurdle to adoption, and its sights are set on phasing out federal EV tax credits that have fueled sales.

LEARN MORE: Tesla Continues Loss of California Favor

 

 

 

More Industry

F&Iby Lauren LawrenceFebruary 27, 2026

Price Driving Insurance Churn

Over half of insurance holders ages 18 to 29 reported to be 'somewhat' likely to change providers in the next 90 days, according to CivicScience, which found that interest was lower among older age groups.

Read More →
Industryby Lauren LawrenceFebruary 26, 2026

AI Drives Dealer Website Traffic

Total visits to dealer websites from generative artificial intelligence platforms grew more than 15 times year-over-year, signaling a shift in how many consumers shop for cars online.

Read More →
Industryby Hannah MitchellFebruary 26, 2026

Automakers Tops in Fuel Economy

In the U.S., Honda has the most efficient gas-electrified combo lineup while Tesla beats all automakers in annual EPA ranking as brands built their alternative-fuel offerings.

Read More →
Ad Loading...
F&Iby Lauren LawrenceFebruary 25, 2026

Report Finds Year-End F&I Strength

Deal volume ebbed and flowed throughout 2025, but product performance remained steady, according to automotive technology and data intelligence solutions provider StoneEagle.

Read More →
Industryby Hannah MitchellFebruary 24, 2026

Overall Consumer Confidence Up

Americans’ view of present business conditions, the labor market and family finances, though, are still in the dumps, and if they plan to buy cars, many target used units.

Read More →
Auto Financeby Lauren LawrenceFebruary 23, 2026

Auto Loan Forecast Bucks Market Trend

Auto loan originations rose over 6% year-over-year in the third quarter of 2025, but TransUnion predicts a slight decline in auto loan growth this year, making it an outlier in the company's overall lending forecast.

Read More →
Ad Loading...
F&Iby Hannah MitchellFebruary 23, 2026

Some Auto Brands Cheaper to Insure

A new top 10 list ranks the least expensive for average full insurance coverage on a clean driving record and high driver credit scores.

Read More →
Industryby StaffFebruary 20, 2026

Learn to Manage the Mayhem at Agent Summit

Rob Mancuso – president of Mancuso Automotive – will present a Keynote at the 2026 event.

Read More →
Fixed Opsby Hannah MitchellFebruary 20, 2026

Auto Recalls Sank Last Year

2025 Sedgwick data indicate that the number of vehicles affected fell to its lowest point in more than a decade.

Read More →
Ad Loading...
Industryby Lauren LawrenceFebruary 19, 2026

Affordability Leads Top-Rated List

Edmunds’ editorial team tested 300-plus vehicles to help determine the Top Rated Awards for 2026, and one brand stood out with multiple rankings, including Best of the Best.

Read More →