By Lauren Fix, The Car Coach
Video Link: https://youtu.be/y-
Congress just sent a jolt through America’s automotive industry—and this time, it’s not about subsidies or mandates. It’s about getting Washington out of the driver’s seat.
On July 4, 2025, Congress passed—and President Trump signed—what’s being called the “One Big Beautiful Bill Act.” Catchy name aside, this sweeping legislation delivers major changes that will affect your next car, your fuel bill, and possibly even your job. Whether you’re a mechanic, car dealer, or someone simply trying to afford a reliable ride, this bill deserves your full attention.
It dismantles a decade of EV favoritism, slashes penalties for automakers, and puts gas-powered vehicles back in the spotlight.
EVs at the Curb: USPS to Sell Off Thousands of Electric Trucks
The legislation starts by reversing course on the U.S. Postal Service’s electric vehicle initiative. Approximately 7,200 electric mail trucks, part of a multi-billion-dollar green fleet program, are now on the chopping block. The program is being defunded and scaled back. The administration has redirected USPS’s focus: deliver the mail—not test environmental policy.
This move halts a planned $9.6 billion investment in additional electric fleet funding. Ford’s custom-built E-Transit vans, designed specifically for USPS, were at risk of liquidation. But the Senate parliamentarian ruled that a 60-vote supermajority is required to proceed, putting the sell-off on pause. Finding buyers for purpose-built EVs isn’t easy. If there are none, taxpayers could be left footing the bill. Expect this issue to return as a future vote—or be defunded another way.
A Hard Reset on EPA Overreach and Fuel Standards
Next in the bill’s crosshairs: the Environmental Protection Agency.
The bill revokes California’s EPA waiver, which allowed the state to enforce its own stricter emissions standards—effectively forcing automakers to build more EVs and hybrids. That power is now gone. Without California driving nationwide standards, the entire regulatory framework could collapse.
More significantly, the bill eliminates fuel economy penalties for automakers. Under the old CAFE rules, companies like Stellantis paid nearly $191 million in fines from 2019–2020 alone. Under this law, those penalties drop to zero.
This gives manufacturers breathing room—and the freedom to build what Americans actually want: SUVs, trucks, hybrids, and reliable gas-powered cars. Not battery-powered compliance boxes.
EV Tax Credits: Ending Sooner Than Expected
This may be the most seismic shift: EV tax credits are ending—and faster than expected.
$7,500 credit for new EVs and
$4,000 credit for used EVs
…will both vanish on September 30, 2025—three months earlier than originally planned in the House bill.
It gets more aggressive:
Leased EVs from non-U.S. automakers lose tax credits immediately.
The EV charger tax credit will end in June 2026.
The manufacturing tax credit for U.S.-built EV batteries remains—but excludes any company linked to China.
This represents a major economic shift. With EVs costing, on average, $9,000 more than comparable gas-powered vehicles, losing these incentives could price out many potential buyers.
Analysts now project:
A 72% drop in EV sales over the next decade.
Up to 80,000 U.S. jobs lost.
A potential $100 billion hit to projected EV investment.
Tesla may weather the storm. But Ford, Hyundai, and others may delay or scale back their EV expansion plans. Expect fewer ads, slower rollouts, and a return to mainstream gas-powered options on showroom floors.
The Road Ahead: More Gas Cars, More Choice, More Questions
So what does all this mean for everyday drivers?
Expect a comeback for gas-powered vehicles. With emissions penalties gone and EV tax credits phasing out, automakers are motivated to invest in the types of vehicles people are actually buying. That means more variety, lower prices, and vehicles designed for real-world demands—not federal compliance.
Fuel demand is expected to remain high, a win for domestic energy producers. Oil and gas advocates have long argued that EV mandates were artificially distorting the market. Now, that distortion is being corrected.
The bill also introduces a proposed tax deduction for buyers paying high auto loan interest rates—a timely move, as more Americans finance vehicles in a high-rate economy. It offers targeted relief without distorting the car market.
While the proposed $250 annual EV road-use fee didn’t make it into the final legislation, don’t be surprised if it resurfaces in the next round. Gas drivers already pay fuel taxes that fund road maintenance. EVs pay nothing. That imbalance won’t last forever.
Winners and Losers: Who’s Benefiting, Who’s Scrambling
This bill rewards automakers focused on building vehicles Americans actually want—not those chasing regulatory credits.
Winners:
Traditional automakers
Oil and gas workers
Dealers in rural and suburban regions where EV demand is low
Losers:
Global automakers who bet heavily on EV growth
Companies with battery supply chains tied to China
Environmental groups, urban planners, and public utilities banking on mass EV adoption
Groups like the National Automobile Dealers Association (NADA) and CarMax lobbied for a longer transition period, fearing market disruption. Critics of the bill claim it undermines climate goals, raises utility costs, and risks handing the EV lead to foreign competitors like China.
Why You Should Care
This isn’t just a debate about clean air or car tech. It’s a fight over freedom, control, and consumer choice.
Do you want a vehicle that fits your life, your budget, and your needs—or one chosen by a government planner in Washington or Sacramento?
That’s the real question.
This legislation pulls back federal mandates, cuts artificial market manipulation, and puts drivers back in charge of their own purchasing decisions. It restores balance to an industry long distorted by political ideology and regulatory pressure.
It’s not perfect. But it’s a start.
So before you buy your next car, take a moment to consider: this isn’t just about a vehicle. It’s about the future of mobility—and the freedom to choose what drives it.
Editorial Disclaimer
The views and opinions expressed in this blog post are those of the author and do not necessarily reflect the official policy or position of the National Motorists Association. We believe in fostering open dialogue and welcome diverse perspectives on issues affecting motorists. If you would like to submit a response or opposing viewpoint, we encourage you to contribute. Please email us at greg@motorists.org for submission guidelines.
Lauren Fix is an automotive expert and journalist covering industry trends, policy changes, and their impact on drivers nationwide. Follow her on X @LaurenFix for the latest car news and insights.
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