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119-hr-2814119th CongressWALLET

Transportation Freedom Act

Sponsored By: Representative Balderson, Troy [R-OH-12]

Introduced

Summary

Prioritizes U.S. auto manufacturing while overhauling federal vehicle pollution and fuel-economy rules. This bill would create a large tax incentive for domestic auto jobs and remove multiple current EPA and CAFE rules, then require agencies to write new standards that emphasize domestic production and technological feasibility.

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  • Manufacturers and workers: Auto companies that meet strict domestic and workforce conditions could claim a 200% deduction on eligible wages, with a $150,000 per-worker cap.
  • States and emissions rules: The bill would revoke Clean Air Act waivers, including California's zero-emission vehicle mandates, and repeal several multipollutant, heavy-duty, and CAFE rules.
  • Standards and consumers: The Department of Transportation and EPA would have 180 days to issue new CAFE and greenhouse gas standards for model years 2027 through 2035. Those standards must be technologically feasible and may not require electric vehicles.

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Bill Overview

Analyzed Economic Effects

4 provisions identified: 2 benefits, 0 costs, 2 mixed.

One compliance test for car rules

If enacted, meeting fuel economy rules could also count as meeting greenhouse gas rules for the same vehicles, and the reverse. Paid penalties or purchased credits under one program could count toward compliance with the other. This would streamline how automakers show compliance.

Big tax break for automakers

If enacted, auto and parts makers could elect a new tax deduction equal to 200% of eligible wages. To qualify, they would need 75% U.S. final assembly and 75% U.S.-made engines, transmissions, or battery cells, and no shifting production abroad. They would have to offer platinum-level health coverage to workers and retirees, meet a pension test (50% wage replacement after 30 years, or a 10% employer 401(k) contribution), share at least $2,000 per worker for every $1 billion in special dividends or stock buybacks, and stay neutral on union efforts. Only wages at or above the 75th percentile count, capped at $150,000 per worker. The deduction would apply to the elected portion of wages and would start for tax years after enactment.

End state vehicle emissions waivers

If enacted, the bill would revoke all past waivers that let states set different vehicle emissions rules, including California’s ZEV waivers. It would repeal the law that let other states adopt California’s standards. It would also bar EPA from granting any new state waivers for different vehicle standards.

Reset and redo federal car standards

If enacted, the bill would cancel three recent EPA and NHTSA vehicle rules. DOT and EPA would then have 180 days to set new fuel economy and greenhouse gas rules for model years 2027–2035. For heavy-duty trucks, EPA would publish new greenhouse gas rules within 180 days, starting no earlier than model year 2027; until then, the model year 2024 standards would apply. The bill defines key terms and would let agencies receive whatever funding Congress later provides to carry this out.

Sponsors & CoSponsors

Sponsor

Balderson, Troy [R-OH-12]

OH • R

Cosponsors

  • Rep. Barr, Andy [R-KY-6]

    KY • R

    Sponsored 4/10/2025

  • Rep. Cuellar, Henry [D-TX-28]

    TX • D

    Sponsored 4/14/2025

  • Rep. Gooden, Lance [R-TX-5]

    TX • R

    Sponsored 4/29/2025

  • Rep. Bacon, Don [R-NE-2]

    NE • R

    Sponsored 5/5/2025

  • Rep. Franklin, Scott [R-FL-18]

    FL • R

    Sponsored 5/29/2025

  • Rep. Weber, Randy K. Sr. [R-TX-14]

    TX • R

    Sponsored 6/6/2025

  • Rep. Hill, J. French [R-AR-2]

    AR • R

    Sponsored 6/13/2025

  • Rep. McGuire, John J. [R-VA-5]

    VA • R

    Sponsored 9/10/2025

  • Rep. Bentz, Cliff [R-OR-2]

    OR • R

    Sponsored 9/10/2025

  • Rep. Amodei, Mark E. [R-NV-2]

    NV • R

    Sponsored 9/10/2025

  • Rep. Van Drew, Jefferson [R-NJ-2]

    NJ • R

    Sponsored 9/11/2025

  • Rep. Mann, Tracey [R-KS-1]

    KS • R

    Sponsored 9/11/2025

  • Rep. Owens, Burgess [R-UT-4]

    UT • R

    Sponsored 9/15/2025

  • Rep. Miller, Mary E. [R-IL-15]

    IL • R

    Sponsored 9/19/2025

  • Rep. Cole, Tom [R-OK-4]

    OK • R

    Sponsored 10/6/2025

  • Rep. Loudermilk, Barry [R-GA-11]

    GA • R

    Sponsored 11/17/2025

Roll Call Votes

No roll call votes available for this bill.

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