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Politico
11-08-2025
- Automotive
- Politico
Electric vehicle fees on the horizon
QUICK FIX — Congress may look to resurrect a fee on electric vehicles that didn't make it into the GOP megabill, as a way to help fix the dwindling Highway Trust Fund. — DOT's OIG is reviewing circumstances related to January's deadly midair collision between a military helicopter and passenger plane. The Army hasn't launched its own audit yet. — The FAA wants to extend limits on flights into Newark Liberty International Airport through late October next year, as construction on a major runway continues to cause delays. 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@ Chris at cmarquette@ Oriana at opawlyk@ and Pavan at pacharya@ and follow us at @SamOgozalek, @ChrisMarquette_, @Oriana0214 and @pavanmacharya. 'Look out the left, the captain said/ The lights down there, that's where we'll land/ I saw a falling star burn up/ Above the Las Vegas sands.' 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. Driving the day FEDERAL EV FEE IN SIGHT: Republicans in both chambers are interested in resurrecting a new fee on electric vehicles that didn't make it into the GOP megabill (H.R. 1), as a way to help shore up the Highway Trust Fund's revenue deficit, Chris writes. There's a lot to be worked out, but both House Transportation Committee Chair Sam Graves (R-Mo.) and Senate EPW Committee Chair Shelley Moore Capito ( said they're interested in exploring some kind of fee on EVs (with Graves going farther, saying he's also interested in a fee on hybrids). THAT DOESN'T MEAN IT'LL BE EASY: A fee tailored to electric vehicles could be an attractive way for Republicans to raise money, especially if it can be messaged as making liberals pay their fair share for wear and tear on roads. But a broader fee that would have captured every car, even ones that use only gasoline, went down in flames. A narrower one could have a better chance, but some Republicans will balk at any fee. $64 BILLION: That's how much the Congressional Budget Office previously estimated would be collected through 2034 as a result of a fee on EVs and hybrids included in an early version of the megabill. But that's a far cry from the $150 billion the CBO estimated will be needed for the next surface transportation bill (absent spending cuts). Aviation MORE EYES: DOT's Office of Inspector General is looking into how the FAA manages the crowded airspace around Ronald Reagan Washington National Airport, Oriana reports. It's the latest effort by federal officials to understand why an Army helicopter and commercial airplane collided near Washington. The audit will focus on the process the FAA uses to allow some traffic to be exempt from a requirement to use a location-transmitting technology called ADS-B. — The audit makes good on half of a request Republican and Democrat senators made in June, when they asked the OIG's offices at DOT and Army to inspect the circumstances around the crash. The Army hasn't launched its own audit yet, which Sen. Maria Cantwell (D-Wash.) — ranking member of the Senate Commerce Committee — called out in a statement Friday. — FAA Administrator Bryan Bedford said in a statement that 'we welcome the scrutiny' and added the agency would 'cooperate fully' in the OIG's investigation and 'not hesitate to take action if we identify risk.' MORE LIMITS: The FAA wants to extend limits on departures and arrivals into Newark Liberty International Airport through late October 2026, according to a notice to be published in the Federal Register on Tuesday. The number of flights into the airport has been limited — to 28 departures and 28 arrivals per hour when construction is underway — since May, largely due to long delays prompted by intermittent construction on a major runway and technology issues involving air traffic control communication. — With the new update, departures and arrivals would continue to be reduced when construction on the runway is ongoing — but can include more flights outside of the construction period. DON'T BE THE NEXT NEXTGEN: In a letter response to the House T&I aviation subcommittee, the Modern Skies Coalition, an umbrella group for dozens of aviation industry groups including major U.S. airlines and some associated unions, last week outlined priorities for lawmakers to consider aside from funding a new air traffic control system. — Some of those priorities include forming detailed plans, ensuring FAA and contractors stick to timelines, and safeguarding 'continuity of funding' to execute the project. In all, the industry members stress that the oversight needs to be there in order for the air traffic control revamp to not end up like the NextGen program, which MT readers know has faced delays, cost overruns, and insufficient resources. Maritime DEFCON 2025: U.S. maritime was an unexpected center point of this weekend's DEFCON conference in Las Vegas, John Sakellariadis reports, where 30,000 of the world's best hackers gather to find flaws in complex hardware and software systems. Hackers at the conference spent hours finding software holes in commercial ships and U.S. ports (that are increasingly hooked up to the internet) that bad actors could exploit to commit crimes, such as redirecting the flow of goods away from the ports to which they are meant to go. — The U.S. Coast Guard has taken note of the threat of cybercrime, issuing a rule last month requiring U.S.-flagged ships and ports to beef up their network security (Congress also gave the Coast Guard an additional $25 billion in the 'One Big Beautiful Bill' Act to enhance cybersecurity). Automobiles KEEP ROLLING: Elon Musk's improving fortunes this August got a little bit better last week. Tesla can continue to have its robotaxis on Texas roads, even after state regulations related to autonomous vehicles change at the start of next month. According to a Texas government website, Tesla's Robotaxis are now licensed with the state, a requirement for all companies operating driverless vehicles in Texas moving forward. — Tesla began operating AVs in Austin, Texas earlier this summer. The city has been one of several nationwide to see a significant deployment of robotaxis. Trade TARIFF DELAYS: Though Japan and the U.S. appeared to reach a trade deal last month to lower tariffs across the board (including a decrease for autos from 27.5 percent to 15 percent), some of those changes didn't show when President Donald Trump's reciprocal tariffs went into effect last week (Japan says the U.S. will fix the 'regrettable' error). Delays in meeting the terms of these deals 'reduces the credibility' of any other trade agreements Trump reaches with other countries, Chris Douglas — a University of Michigan-Flint economist with expertise on tariffs — told Pavan. — If U.S. automakers start to lose faith in Trump's ability to strike and maintain deals, Douglas said they may have further motivation to pass on tariff costs to consumers — rather than eat those costs as they are doing right now in hopes agreements will be reached (GM took a $1 billion tariff hit in the second quarter; Ford paid $800 million in tariff costs during the same time). The Caboose ICYMI: DOT wants input on developing a strategic plan for fiscal years 2026 to 2030, according to a notice posted to the Federal Register on Friday. The plan is mandated by federal law, and each agency must update theirs at the beginning of new presidential terms. The department says it expects to post the finalized plan to its website around February of next year. The Autobahn — 'Boeing's $4.7 Billion Spirit AeroSystems Deal Cleared in U.K.' Wall Street Journal. — 'Delta and Alaska Air Square Off in Battle for Seattle.' Wall Street Journal. — 'Jaguar Land Rover Backs Guidance Despite Hit From Tariffs and EV Transition.' Wall Street Journal. — 'Lyft Bets on Robotaxis to Drive Revenue Growth.' Wall Street Journal. — 'Japan Says Trump to Correct 'Extremely Regrettable' Error in Tariff Order.' New York Times. — 'China's car sales growth slows in July, with weaker hybrid demand.' Reuters. — 'Drones Hover Over CATL Mine as Lithium Market Anxiety Rises.' Bloomberg. — 'The House Lawmaker With a Secret Helicopter.' NOTUS. — 'Coast Guard discloses role in probe of Chinese ship-to-shore cranes.' POLITICO Pro.
Politico
04-08-2025
- Politics
- Politico
A disaster decades in the making
QUICK FIX — Among the revelations from the NTSB's hearing into the January Washington air disaster: Nobody seemed shocked that the crash occurred. — Congress may be gone for its August recess, but lawmakers already have plans to continue scrutinizing the FAA and Ronald Reagan Washington National Airport once they return. — The Senate confirmed a former Republican congressman from New York to be the FTA's new administrator. 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@ Chris at cmarquette@ Oriana at opawlyk@ and Pavan at pacharya@ and follow us at @SamOgozalek, @ChrisMarquette_, @Oriana0214 and @pavanmacharya. 'Sometimes I feel like I could stay/ On the bus/ For all time/ On the bus.' 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. Driving the day PUSHED TO THE LIMIT: Witnesses during last week's three-day NTSB hearing into the Jan. 29 midair catastrophe in Washington described an aviation system that seemed bound to eventually fail and a paralyzed government response — with 67 lives ultimately lost in the worst U.S. aviation disaster in two decades. Oriana, Pavan, Sam and Chris have a deep dive into the major takeaways and the reactions to the marathon inquiry, which ended late Friday. (As a reminder, the independent safety board didn't determine what caused the crash. That report is expected sometime next year.) — Key quote: 'I was chairman of the board for almost eight years. I've followed aviation for several decades. Nothing in this surprises me,' said former NTSB Chair Jim Hall of what the independent agency detailed. It 'only demonstrates that the past is prologue.' THE MAJOR ISSUES: A slew of documents released by the safety board as well as testimony from a battery of witnesses showed, among other things: a highly complex and congested airspace, with prior concerns raised about a risky helicopter route; mistakes the night of the collision between an Army Black Hawk and PSA Airlines regional jet; and an overworked air traffic control tower. — NTSB Chair Jennifer Homendy at one point also suggested that FAA officials were interfering in the board's probe. But then she softened her language, saying it 'looks like you're trying to hide things,' even though she didn't think the regulator intended to conceal information, Pavan reports. WHAT'S NEXT? Jeff Guzzetti, an aviation safety consultant who was a longtime official at both the FAA and NTSB, called the hearing 'the FAA's day of reckoning' and predicted that it could put pressure on the agency to finally curtail flights at Ronald Reagan Washington National Airport and take further action to bolster air traffic controller staffing. And, he told Sam, it may push the Army to reduce its helicopter operations in the area. AND IN CONGRESS: Even as Washington enters the sleepy August recess, lawmakers are sure to continue digging into the issues raised last week once they return in September. Sen. Jerry Moran (R-Kansas), chair of the Senate Commerce Committee's aviation panel, told Chris that he's mulling a hearing to examine why the FAA didn't act on prior safety recommendations related to Reagan National. Sen. Tammy Duckworth (D-Ill.), the top Democrat on Moran's subcommittee, favors a hearing, too. — Virginia's delegation in the upper chamber, Democratic Sens. Mark Warner and Tim Kaine, also seem poised to resume their scrutiny of increased congestion at the airport after they failed last year to prevent the expansion of Regan National's long-distance flight 'slots' under the 2024 FAA law. And they may have a new ally: Sen. Tim Sheehy (R-Mont.), a former Navy SEAL who was elected last fall and serves on the Commerce Committee. 'We need to push more flights' to Washington Dulles International Airport, Sheehy said. On The Hill TRANSIT AGENCY GETS ITS LEADER: Roughly four months after he advanced out of committee, former Rep. Marc Molinaro (R-N.Y.) was confirmed 71-23 by the Senate on Saturday night to be the FTA's new administrator. Sam has the story. — As MT readers will know, Molinaro has been serving as a senior adviser to DOT Secretary Sean Duffy while awaiting floor action. He's a former Republican congressman who represented an upstate New York district before losing his reelection bid last year and is an advocate for boosting accessibility in transit. — In a statement, Paul Skoutelas, president and CEO of the American Public Transportation Association, said that Molinaro 'brings valuable real-world experience to the role' and understands the importance of transit to economic growth and job creation. Rail MOTHBALLING IT: The FRA is moving to cancel more than $26 million in federal grant dollars awarded to kick-start a high-speed, Baltimore-to-Washington magnetic levitation rail project, as well as scrapping an environmental review, essentially nixing the endeavor. Chris has the story. — The agency argues that there isn't a viable path forward due to delays and cost overruns. The Trump administration also cites anticipated, indirect impacts to federal property, including at the NSA, NASA, Defense Department and other agencies. — Maryland's DOT didn't seem too bothered by the announcement, with now-former Secretary Paul Wiedefeld writing that the state 'understands that FRA's decision reflects the significant challenges posed by the project.' SOUND FAMILIAR? Under Duffy's leadership, the department has also taken aim at California's high-speed rail effort, yanking around $4 billion in funds. (This sparked a lawsuit from the state, which remains ongoing.) Electric Vehicles A LOSS FOR TESLA: A federal jury in Florida found Friday that the electric vehicle-maker was partly to blame for a 2019 crash involving its 'Autopilot' driver-assistance suite that killed a 22-year-old woman and injured her boyfriend, Chris reports. If the verdict is upheld, Tesla would pay $243 million in damages. Elon Musk's company in a statement said it plans to appeal. Aviation DEEP DIVE: Benjamin Guggenheim is out with a new look into why a bill by Sen. Jeff Merkley (D-Ore.), S. 1691, which aims to limit the use of facial recognition technology at airports, got yanked from the Senate Commerce Committee's markup agenda last week. The travel industry had lobbied against the legislation, but Republicans who support the measure privately say it was the TSA itself that orchestrated the campaign. An agency spokesperson didn't provide a statement in response to requests for comment. NOT THE CASE, AIRLINE SAYS: Responding to questions from a trio of Democratic senators, Delta Air Lines' chief external affairs officer, Peter Carter, in a letter sent Friday but dated July 31 denied that the carrier deploys 'individualized' or 'surveillance' pricing for tickets, a practice that uses people's personal data to set specific amounts. Critics fear the practice could set prices at the highest level a person is willing to pay. Alfred Ng has the story. — Context: Sens. Ruben Gallego (D-Ariz.), Richard Blumenthal (D-Conn.) and Warner last month inquired into the issue after Delta told investors that it aims to use artificial intelligence to set pricing for 20 percent of its domestic flights before 2025 wraps up. Trucking KEEP AN EYE OUT: The FHWA plans to issue a truck parking survey by year's end, an agency spokesperson told Pavan. The exact date isn't entirely clear, but the document will provide a comprehensive picture of the ongoing shortage of public spots for semi-trucks along the nation's highways. Transit ICYMI: Seattle late last week filed a federal lawsuit against DOT and the FTA over their implementation of a January executive order from President Donald Trump that instructed agencies to make sure grant recipients don't have diversity, equity or inclusion programs. You can check out the court papers here. (Other defendants include the Justice Department and DHS.) — DOT didn't respond to a request for comment. The Caboose COLD, COLD, COLD: Oriana and Pavan soldiered through last week's marathon NTSB hearing, which featured everything from malfunctioning plumbing to 'elbowgate.' As it wrapped up Friday, temperatures at L'Enfant Plaza got chilly, dipping down into the 50s. Oriana snagged (temporarily) an NTSB fleece: IN A GALAXY FAR, FAR AWAY: Looks like Duffy is a 'Star Wars' fan? Shifting Gears — Louis Sola, the former chair of the Federal Maritime Commission, is now at lobbying firm Thorn Run Partners. — HAAS Alert, a service that warns drivers of nearby emergency responders, is joining the Alliance for Automotive Innovation. The Autobahn — 'Boeing sued by flight attendants over MAX 9 mid-air panel blowout.' Reuters. — 'Panama Ports says it will discuss ports sale with Panama government.' Reuters. — 'A Steep Mountain Drive, a Brake Failure and a Volvo Recall.' Wall Street Journal. — 'BYD Sales Sputter as Competition, Regulatory Scrutiny Grow.' Bloomberg. — 'European automakers despair of dodging Trump tariffs.' POLITICO Pro. — 'Senators leave Washington without Trump nominees deal.' POLITICO.
Politico
28-07-2025
- Politics
- Politico
Gearing up for NTSB's marathon Reagan National crash hearing
Presented by The Association of American Railroads QUICK FIX — Federal accident investigators will hold a three-day hearing this week to examine January's regional jet-Black Hawk disaster. We break down the unanswered questions. — DOT this spring was planning to carry out major layoffs at a slew of its subagencies, including the FHWA, FRA and NHTSA — but not at the FAA, a court filing shows. — Senate appropriators want to bar DOT from using their spending bill to close field offices across the U.S. 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@ Chris at cmarquette@ Oriana at opawlyk@ and Pavan at pacharya@ and follow us at @SamOgozalek, @ChrisMarquette_, @Oriana0214 and @pavanmacharya. 'Parked beside the ocean/ On our moonlight drive.' Editor's Note: 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. Driving the day SEARCHING FOR CLUES: Since January's midair catastrophe in Washington, questions have mounted over how things went so terribly wrong above the Potomac River, where a collision killed 67 people. The general contours of what went awry have been evident for some time — but more details could be added when the NTSB meets this week for a three-day public investigative hearing on the accident. (No probable cause will be determined — yet.). WHAT'S UNANSWERED?: Though it's clear that at least one of the aircraft was in the wrong place at the wrong time, other specifics about just what happened remain vague. Oriana, who will be at the hearing with Pavan, put together a list of some of the biggest outstanding questions on her radar: — Was an advanced transmitting technology that gives air traffic controllers insight into an aircraft's speed and location indeed turned off by the crew piloting the Black Hawk, or was the device just not operational? (Investigators so far have only said it wasn't on.) — Recovered cockpit recording data from the helicopter has indicated that some of the radio transmission from controllers at Reagan National to the crew had been cut off or interrupted somehow, suggesting that the Black Hawk may not have heard certain directions in-flight. How could that happen? — There have also been discrepancies related to the reported final altitude of the Black Hawk before it collided with the jet. Have investigators confirmed just how high it was flying? — We'll also be listening for any more details about the way the Army conducts its helicopter operations in the region — including how many flights are done around the airport, how the necessity of those is determined and anything the military is doing to mitigate related problems. At the Agencies SOME DETAILS DISCLOSED: DOT this spring took initial steps to conduct reductions in force, or RIFs, at the FHWA, FRA, NHTSA, FTA, FMCSA, MARAD, PHMSA and Great Lakes St. Lawrence Seaway Development Corp., as well as the secretary's office, according to a court filing that your MT host found. (The FAA is not on the list, which maybe isn't surprising given the intense scrutiny of the aviation regulator since the Reagan National crash.) — The department submitted two requests in April to the Office of Personnel Management, both of which OPM approved later that same month, to get the office's sign-off on various procedural moves for carrying out RIFs, according to data attached to a declaration from Noah Peters, senior adviser to OPM Director Scott Kupor. — The court papers were filed as part of an ongoing lawsuit brought by unions against the Trump administration over its RIF effort. The case previously resulted in a weekslong pause of any mass layoffs, but the Supreme Court lifted that block earlier this month, allowing the RIFs to move forward. Peters noted that some agencies 'may have decided not to proceed with RIFs.' At this point, it's unclear what DOT plans to do when it comes to any mass layoffs. Transportation Secretary Sean Duffy has told reporters that the department is doing an 'ongoing assessment' of potential cuts, but added that 'we feel good' about current staffing levels. DOT didn't respond to questions Friday. APPROPRIATIONS DOGE-PROOFING?: Your MT host on Friday continued to dig through the Senate Appropriations Committee's fiscal 2026 spending bill, S. 2465, which the panel advanced last week in a 27-1 vote. He noticed this interesting tidbit: — The legislation includes language that would prohibit DOT from using the appropriations to open, close, redesignate as a lesser office or reorganize a regional, division or field office, unless it's required under the bill, the accompanying committee report about the legislation or part of the GOP's recent reconciliation package concerning air traffic control upgrades and consolidation. It further directs DOT to maintain its field offices as of late September of last year with 'sufficient staff to carry out all statutorily authorized activities.' (There's a similar caveat for this provision, too, related to the text of the spending bill and Republicans' megalaw.) WHAT PROMPTED THIS?: It wasn't immediately clear, but your MT host reported in May that DOGE's cost-cutting squad claimed to have ended more than two dozen DOT real estate leases for everyone from federal highway officials to trucking regulators across the U.S., creating upheaval and uncertainty. Chris later that month scooped that so many FHWA employees had opted into the Trump administration's so-called deferred resignation program that some of its state-level offices could no longer be viable, according to three people who work closely with such locations. Trade AGREEMENT ANNOUNCED: The U.S. and European Union struck a trade deal Sunday that includes a 15 percent baseline tariff on imports from the bloc — a rate that will apply to cars, Koen Verhelst and Myah Ward report. (Trump had previously threatened duties of 30 percent on the EU, and he imposed ones of 25 percent on foreign vehicle manufacturers in early April.) A WIN FOR AEROSPACE: Ursula von der Leyen, president of the European Commission, told reporters there will be no tariffs applied to aircraft and plane parts by both the U.S. and EU under the agreement. Airlines for America in a statement said this will 'grow jobs, strengthen our economic security and provide a framework for U.S. leadership in manufacturing and safety.' On The Hill SLEEPY SUMMERTIME, ALMOST: While the NTSB hearing will be full-steam ahead down in L'Enfant Plaza, things will be winding down on Capitol Hill this week as senators prepare to join their House counterparts on recess. The upper chamber's DOT spending bill isn't being teed up for floor action, which leaves just one event on the agenda related to transportation issues: — Wednesday: The Senate Commerce Committee will host a markup for six of President Donald Trump's nominees for high-ranking DOT roles: Jonathan Morrison for NHTSA administrator; Derek Barrs for FMCSA administrator; Paul Roberti for PHMSA administrator; Seval Oz for assistant secretary for research and technology; Michael Rutherford for assistant secretary for multimodal freight infrastructure and policy; and Gregory Zerzan for general counsel. Rail INTERESTING ...: Your MT host recently caught up with Sen. Adam Schiff (D-Calif.) to ask about the Trump administration's move to ax around $4 billion in federal grant funds previously awarded to California's high-speed rail project. Schiff said he had spoken with Duffy before the FRA's recent decision, urging him to 'give [the initiative] an objective review, which he promised he would do. And that was the last I heard from him on the subject.' — This occurred months ago, Schiff said. He added that he thinks the pair talked over the phone. As MT readers will know, California has filed a federal lawsuit against the FRA over the issue. Transit ICYMI: DOT said Friday that recipients of FTA's Low or No Emission Grant Program, which is used for the purchase or lease of clean energy-powered buses, can submit a written request to the transit agency to change their projects from using 'no emissions' to 'low emissions' technology. Shifting Gears — The Alliance for Automotive Innovation has joined the Modern Analytics for Roadway Safety Coalition. The Autobahn — '2 Crew Members Are Hurt as Southwest Plane Plunges Abruptly After Takeoff.' New York Times. — 'Boeing Emerges as a Winner in Trump's Trade Wars.' New York Times. — 'Passengers evacuated from plane onto Denver runway after landing gear issue sparked fire and left 1 injured.' CNN. — 'Tim Lilley spent his life flying. Then his son died in a plane crash.' Washington Post. — 'Does D.C. have the worst traffic? Not so fast.' Washington Post. — 'Airlines Are Having a Bruising Year. Delta and United Are Doing Better.' Wall Street Journal. — 'Volkswagen Teases Made-in-America Audis, Porsches After $1.5 Billion Tariff Hit.' Wall Street Journal. — 'French authorities investigate if Jewish passengers were removed from flight due to religion.' AP. — 'Kia Reshapes US Sales Strategy, Cuts Incentives Over Tariffs.' Bloomberg. — 'US closes probe into Waymo self-driving collisions, unexpected behavior.' Reuters. — 'South Korea air crash: Inside the final minutes of Jeju Air flight.' Reuters. — 'Regulator: Tesla cannot offer autonomous California rides.' POLITICO Pro. On The Calendar — Nothing on our radar! Know of an event we should have on our calendar? Let MT know at transpocalendar@
Politico
21-07-2025
- Business
- Politico
What's next for DOT appropriations?
Presented by The Association of American Railroads With help from Pavan Acharya QUICK FIX — The Senate Appropriations Committee is gearing up to consider its DOT and HUD spending bill after a House panel cleared its own version last week. Here's the schedule. — The FAA's finalized request for companies' ideas on revamping the U.S. air traffic control system still isn't out. And the timeline moving forward is unclear. — There's a looming trade war with the EU, and aircraft are in the crosshairs. 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@ Chris at cmarquette@ Oriana at opawlyk@ and Pavan at pacharya@ and follow us at @SamOgozalek, @ChrisMarquette_, @Oriana0214 and @pavanmacharya. 'If you leave today, I'll just stare at the way/ The orange touches all things around/ The grass, trees, and dew, how I just hate you/ Please turn those headlights around/ Please turn those headlights around.' 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. Driving the Week MOVING QUICKLY: The Senate Appropriations Committee will consider its fiscal 2026 DOT and HUD spending bill Thursday morning, skipping a subcommittee markup. (House appropriators approved their version of the annual legislation last week.) The race is on as Congress faces a Sept. 30 funding deadline, with limited days in session over the coming two months due to the August recess. WHAT TO WATCH: Will the panel aim to keep DOT's funding relatively steady — or even increase it? How will the FAA fare? And will transit or Amtrak see cuts? — Where and when: The meeting starts at 9:30 a.m. in Dirksen 106. But as a heads up, the Interior Department and EPA spending bill will also be considered. IS IT FRUITLESS? It's unclear whether Democrats will play ball in the Senate as appropriators seek to avoid another continuing resolution. Keep an eye on the floor as early as Tuesday, with a test vote anticipated for the upper chamber's first tranche of Republican spending bills, including possibly one for the VA and military construction. That will provide some indication of how things are shaping up. Democrats may have little incentive to help the GOP out as a government shutdown looms: Office of Management and Budget Director Russell Vought says the White House may send another rescissions package to Congress soon. GET THE RUNDOWN: Your MT team had full coverage last week of the House Appropriations Committee's fiscal 2026 DOT and HUD spending bill, which the panel advanced. You can read more here: — Sam has a breakdown of the text, including amendments adopted at a markup. — He also has a deep dive into Republicans' attempt to repurpose more than $4 billion in 2021 infrastructure law funds to use for parts of their new legislation. — Sam and Chris reported on the GOP's effort to block any appropriations from flowing to New York's congestion pricing program. — And there's much, much more. Aviation STILL NOTHING: The FAA noted Friday that a finalized version of its request for companies' ideas on how to undertake the Trump administration's planned overhaul of the U.S. air traffic control system is not ready yet. The agency 'is continuing to review feedback, assess, and refine,' reads an update on the federal government's contracting website. 'A new publishing [date] will be determined.' OOP: As MT readers will know, the FAA on July 11 reported that the updated request was anticipated to be released early last week, with proposals for the project set to be due Aug. 4. Now, it's unclear what the time frame is. A TIGHT WINDOW: DOT Secretary Sean Duffy wants to complete the endeavor in three to four years, a highly ambitious schedule. Republicans in their recent reconciliation package gave the FAA a $12.5 billion 'down payment' for the effort, but Duffy told the House Transportation Committee last week that he wants $19 billion more on top of that to complete the entire project. FIRST IN MT: A group of 12 Democratic senators, led by Sen. Ed Markey (D-Mass.), in a letter to FAA Administrator Bryan Bedford is requesting a slew of details about the state of the agency's staffing, citing the firing of probationary workers in February (who a federal judge ordered be reinstated) and the Trump administration's so-called deferred resignation program. The lawmakers want to obtain, among other things, an 'analysis conducted by the Office of Airports related to the impact of workforce cuts on its safety mission.' — The group also wants information about the FAA's use of artificial intelligence to analyze air traffic risks. ICYMI: DOT threatened Saturday to disapprove flight requests from Mexico if the country doesn't take action in response to the Trump administration's concerns over slot cuts and the forced relocation of U.S. cargo carriers out of Mexico City's Benito Juarez International Airport. Details can be found here. Trade A STRESSFUL SUMMER: President Donald Trump is threatening to impose a blanket 30 percent tariff on EU goods starting Aug. 1 if there's no trade deal with the bloc, and Boeing and Airbus are facing a devastating blow if European countries follow through on a potential retaliatory strike against almost €11 billion in U.S. aircraft and parts, Tommaso Lecca reports from Brussels. — 'A tit-for-tat tariff situation would put more pressure on the already fragile aviation supply chain,' said Marina Efthymiou, professor of aviation management at Dublin City University. 'Higher costs and delays in moving parts could slow down aircraft production and deliveries.' On The Hill LOTS OF MODES: It won't be as hectic this week when it comes to transportation issues on Capitol Hill, but lawmakers still have a lot on their plate. Aside from the Senate appropriations markup, here's what's on the schedule: — Tuesday: The Senate Commerce Committee's surface transportation, freight, pipelines and safety panel will hold a hearing about the trucking and commercial bus industries to discuss possible ways to adjust the FMCSA in the successor to the 2021 infrastructure law. At 2 p.m., the House Transportation Committee's Coast Guard and maritime subcommittee will host a hearing about the Federal Maritime Commission's fiscal 2026 budget request. — Wednesday: Three nominees for high-ranking DOT roles will face a Senate Commerce Committee confirmation hearing at 10 a.m. They are Seval Oz for assistant secretary for research and technology; Michael Rutherford for assistant secretary for multimodal freight infrastructure and policy; and Gregory Zerzan for general counsel. At 3 p.m., the Senate Environment and Public Works Committee's transportation panel will host a hearing about improving U.S. infrastructure. The witnesses are: Chad Orn, deputy director of planning at the North Dakota DOT; Marisa Jones, managing director of policy and partnerships at the Safe Routes Partnership; and Samantha Biddle, the Maryland DOT's deputy secretary. drones NONCOMMITTAL: Pavan caught up with Senate Commerce Chair Ted Cruz (R-Texas) late last week after some House members recently suggested they were interested in muscling counterdrone authorities legislation through Congress sometime before next summer's FIFA World Cup, which spans North America. Cruz said it's 'certainly an issue we're looking at very closely,' appearing to refer to his committee, and when asked if it's realistic that such a bill could get done prior to the soccer tournament, he would only say: 'Possibly.' Highways THOUGHTS, ANYONE?: DOT in a Federal Register notice says it's seeking ideas and comments from the public about the next surface transportation bill. NEW FACES WHO THEY ARE: Three DOT administrator nominees breezed through their Senate Commerce Committee confirmation hearing last week, and their initial questionnaires submitted to the panel are now available to the public. — Jonathan Morrison, the pick to run NHTSA, indicated that he might take an industry-friendly approach to the oversight of emerging software and hardware like automated driving systems, saying the agency must work to 'establish robust performance requirements that meet the need for motor vehicle safety in a way that does not hamper innovation.' He's a former Apple attorney and was the agency's chief counsel during Trump's first term, during which he tangled with Elon Musk's Tesla. — Derek Barrs, the choice to head the FMCSA, suggested that he wants to upgrade the trucking regulator's internal computer systems to 'ensure they can effectively support new technologies and withstand cyber threats.' He previously served as chief of the Florida Highway Patrol and is a school board member in the Sunshine State. — Paul Roberti, the prospective leader of PHMSA, who was the pipeline safety agency's top lawyer during the first Trump administration, wrote that it must 'rise to the challenge of streamlining regulations.' Shifting Gears — Jonathon Freye will head the Association of Value Airlines as executive director. He previously led government affairs for an aerospace division of Hyundai Motor Group. The Autobahn — 'Delta regional pilot makes 'aggressive maneuver' to avoid B-52 collision.' ABC News. — 'US judge sets August hearing on bid to end Boeing criminal prosecution.' Reuters. — 'NTSB chair says media reports on Air India crash are speculative, premature.' Reuters. — 'After years of tough rules on liquids and footwear, US air travel may be on the cusp of a new era.' AP. — 'JFK Lifts Ground Stop Caused by Disabled Aircraft on Runway.' Bloomberg. — 'Carmakers Face Uncertainty as Tariffs and Earnings Collide.' Bloomberg.
Politico
14-07-2025
- Business
- Politico
Welcome to appropriations season
With help from Pavan Acharya QUICK FIX — House appropriators released their fiscal 2026 spending bill for DOT, which includes a funding boost for the FAA. — It's a busy few days on Capitol Hill when it comes to transportation issues. DOT chief Sean Duffy will be testifying before lawmakers, and three DOT administrator nominees have their confirmation hearing. — The FAA is expected to update its request for companies' ideas on how to revamp the nation's air traffic control system. We break down the schedule. 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@ Chris at cmarquette@ Oriana at opawlyk@ and Pavan at pacharya@ and follow us at @SamOgozalek, @ChrisMarquette_, @Oriana0214 and @pavanmacharya. 'Mountains rough this time of year/ Close the highway down/ They don't warn the town/ I've been fightin' second gear/ For 15 miles or so/ Tryna beat the angry snow.' 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. Driving the Week DIG IN: The House Appropriations Committee is out with its fiscal 2026 spending bill for DOT, Sam reports. You can read it here, and a summary is available here. The Transportation, Housing and Urban Development, and Related Agencies subcommittee will mark up the legislation at 5 p.m. today. Your MT team is digging through the text, and will have full coverage throughout the week. HIGHLIGHTS: The legislation includes around $22 billion in discretionary money for DOT, which is roughly $3.1 billion below fiscal 2025 levels and $4.7 billion less than the Office of Management and Budget's request, according to the committee's summary. With $83.3 billion in obligation limitation for highway and airport trust fund programs, there's approximately $105 billion in 'total budgetary resources' to 'improve the safety and efficiency of our nation's transportation system,' the summary says. — The FAA would see a notable boost in funding, snagging about $23.3 billion — an increase of roughly $2.3 billion compared to fiscal 2025. This includes approximately $10.4 billion to 'fully fund air traffic control operations' and to allow the FAA to hire 2,500 controllers, the summary says. THE STAKES: Lawmakers are racing to avoid a government shutdown before the Sept. 30 funding deadline — a tall order, with Congress on recess in August and limited days in session over the coming weeks. And Democrats may have little incentive to help Republicans in the Senate pass appropriations bills as the Trump administration continues its government-slashing effort, which includes a rescissions package that targets foreign aid and public broadcasting. On The Hill BUSY, BUSY, BUSY: Aside from the House appropriations markup, Wednesday is jam-packed with transportation-related events on Capitol Hill — all at 10 a.m. They are: — House Transportation Committee: DOT Secretary Sean Duffy, who is also now interim administrator of NASA, will answer questions from lawmakers during an open forum about Navy Yard, including the department's fiscal 2026 budget request. Expect questions on everything from Duffy's plan to build a 'brand new' air traffic control system to how his temporary role at the space agency will impact his work at DOT. — Senate Commerce Committee: Three DOT administrator nominees — Jonathan Morrison for NHTSA, Derek Barrs for the FMCSA and Paul Roberti for PHMSA — will testify at their confirmation hearing. Expect questions about NHTSA's oversight of Elon Musk's Tesla and autonomous driving technology, as well as traffic fatalities; trucking safety and the FMCSA's regulation of the industry; and PHMSA's pipeline safety enforcement. — Senate Environment and Public Works Committee: The panel will hold a hearing about the upcoming surface transportation bill, which will succeed the 2021 infrastructure law. (The Biden-era package expires next fall.) EPW Chair Shelley Moore Capito ( previously told your MT host that she wants to have text in hand by year's end. The witnesses will be: North Dakota Gov. Kelly Armstrong (R), on behalf of the National Governors Association; Austin Ramirez, CEO of Husco International Inc., on behalf of the National Association of Manufacturers; and Kate Gallego, mayor of Phoenix, Arizona. BONUS: The House Homeland Security Committee's transportation and maritime security panel is hosting a hearing at 10 a.m. Tuesday titled: 'Surveillance, Sabotage, and Strikes: Industry Perspectives on How Drone Warfare Abroad Is Transforming Threats at Home.' Aviation THE RACE IS ON: The FAA is expected to release early this week a finalized version of its request for companies' ideas on how to overhaul the U.S. air traffic control system, a key priority of Duffy's. (The GOP included roughly $12.5 billion in Republicans' recent megabill as a 'down payment' for this effort.) Proposals for the project will be due Aug. 4. SPEED IT UP: DOT said Friday that since Duffy rolled out a plan in late February to boost the nation's ranks of air traffic controllers, the FAA has expanded onsite training at its Oklahoma City academy by nearly 30 percent, with July set to see the highest number of students in the agency's history (550 by the end of the month). MORE QUESTIONS: Indian investigators are out with their preliminary report into June's Air India Boeing 787 crash, which killed at least 260 people in the city of Ahmedabad. The initial analysis shows confusion in the cockpit just before the jet hit a building, with fuel supply to the engines being cut off soon after takeoff. In a recording, one pilot can be heard asking the other why he did this — but the latter responded that he hadn't flipped the switches. — Investigators stressed that, at this point, they have no recommendations for either Boeing or GE Aerospace, which manufactured the engines. The probe into the incident remains ongoing, and no cause has been determined. Rail ICYMI: A dozen Senate Democrats are calling on the FRA to deny a petition from the rail industry that would allow most North American freight railroads to replace some track inspections conducted by humans with ones done via autonomous technology. (Unions are upset, too.) The group of lawmakers was led by Sen. Maria Cantwell (D-Wash.), ranking member of the Senate Commerce Committee. The Association of American Railroads, which filed the petition, has argued that the changes will allow companies to be able to detect track defects earlier. The Autobahn — 'At least 4 presumed dead, 11 missing after Houthi rebels sink ship in Red Sea, EU naval mission says.' AP. — 'Ford Breaks Annual Record for Safety Recalls Within First Six Months of Year.' Wall Street Journal. — 'How China's BYD Is Squeezing Suppliers in the EV Price War.' Wall Street Journal. — 'Amid Air India probe, US FAA, Boeing notify fuel switch locks are safe, document, sources say.' Reuters. — 'Boeing settles with Canadian man whose family died in 737 MAX crash.' Reuters. — 'US senator says United, JetBlue partnership could harm competition.' Reuters. — 'Jaguar Land Rover North America recalls about 21,000 US vehicles over torn passenger airbags.' Reuters. — 'US safety regulator opens recall query into over 27,000 Polestar 2 vehicles.' Reuters. — 'Stellantis Says Armed Man at Its Michigan Plant Now In Custody.' Bloomberg. — 'Delta Strips Engines Off New Airbus Jets to Overcome US Shortage.' Bloomberg.
