How Sean Duffy’s DOT is changing carrier regulation

The Department of Transportation’s new secretary has altered the course of DOT operations in under six weeks. A wave of orders from Secretary Sean Duffy’s desk are disrupting major federal and state programs, signaling a shift in how federal agencies will regulate fleets.

In his first weeks, the new secretary started to disassemble fuel efficiency standards, electric vehicle charging funding, and state congestion pricing. Even without approved administrators for FMCSA or NHTSA, Duffy’s influence over 57,000 employees and 13 agencies is already changing trucking's regulatory landscape.

First move: Tackled climate policies

Duffy’s first official act as secretary was combating climate regulations under DOT’s authority. Duffy on January 28 directed the Highway Traffic Safety Administration to unwind Corporate Average Fuel Economy standards.

The CAFE standards mandate minimum fuel efficiency ratings for cars and light trucks. Duffy ordered NHTSA to review and replace existing CAFE standards for model years 2022 and later.

Dismantling federal fuel economy standards will likely take many months. Unwinding CAFE standards requires NHTSA to issue a new rulemaking process to replace each final rule. Adjusting CAFE standards as far back as MY2022 would require NHTSA to replace multiple final rules.

Paused EV infrastructure funding

Duffy paused a federal EV infrastructure funding program indefinitely.

On February 11, DOT issued a memo pausing all new funding approvals under the National Electric Vehicle Infrastructure Formula Program, affecting between $885 million and $1.5 billion in funding. The department also took down large swaths of NEVI webpages and data.

The pause will remain in effect while DOT reviews its policies—the department said it would eventually issue new NEVI guidance documents. The infrastructure funding program was mandated by Congressional law, so an indefinite pause could eventually see pushback from federal courts.

Challenged congestion pricing

Duffy dealt a blow to New York’s congestion pricing program. On February 19, Duffy revoked DOT’s approval of the New York City tolling program.

The move followed Trump’s campaign promise to revoke congestion pricing. The secretary argued that the program was invalid because drivers had no toll-free alternatives and rates seemed based on revenue targets rather than congestion reduction.

“I do not believe that this is a fair deal,” Duffy wrote in a letter announcing the revocation.

New York officials vowed to continue operating its congestion program while they battle the order in court.

See also: Expanding crash preventability

Announced top DOT appointees for trucking

New leaders nominated for NHTSA, PHMSA

The White House has yet to announce a nominee to lead FMCSA. However, the Trump administration did nominate leaders for two major transportation agencies in February. Both appointments will need Senate approval:

NHTSA administrator: Jonathan Morrison

Nominated to lead NHTSA is an Apple executive and longtime auto industry legal expert. Morrison also previously served as NHTSA’s top attorney for three years under the first Trump administration.

PHMSA administrator: Paul Roberti

The Trump administration nominated Paul Roberti to lead the Pipeline and Hazardous Materials Safety Administration. Roberti previously served as PHMSA’s chief counsel under the first Trump term.

Duffy’s DOT announced several high-level presidential appointees across all modes of transportation on January 31 and February 7.

Most transportation appointees have little to do with trucking, but some new members come straight from the industry. Here are the noteworthy appointments joining the ranks of commercial carrier regulators:

Jesse Elison Chief Counsel, FMCSA
- Elison is a long-time trucking industry lawyer. He has held several roles as counsel and attorney since at least 2008, when he started as claims counsel for the American Trucking & Transportation Insurance Company. He also served multiple years as general counsel for Montgomery Transport (No. 154 on the FleetOwner 500) and VP of legal for the Bennett Family of Companies (No. 28 on the FO500). As chief counsel, Elison is the agency’s new top attorney.
Peter Simshauser: Chief Counsel, NHTSA
- Simshauser previously worked as chief legal and compliance officer for Motional AD Inc., a joint venture between Hyundai and Aptiv PLC to commercialize autonomous vehicle technology. As top attorney at NHTSA, Simshauser will oversee the agency’s legal services.
Owen Morgan: Senior Counselor to the Secretary
- Morgan previously worked as a government relations consultant for International Motors. Now, Morgan joins the ranks of Duffy’s many advisors and support staff.
Sean Rushton: Director of Communications, NHTSA
- Rushon returned to his role as director of communications for NHTSA. Rushton held the role during the end of the first Trump term. Now, Rushton resumes management of NHTSA’s communication and media relations.

What’s next for Duffy’s DOT?

While Duffy continues to follow Trump administration priorities, the Department of Transportation may still see changes to its leadership and its attitude toward autonomous vehicles. The White House and DOT did not respond to requests for comment.

The Trump Administration will continue to shape its new DOT leadership. The trucking industry is waiting to hear nominations for a new FMCSA administrator, while NHTSA’s and PHMSA’s nominated administrators still need Senate confirmation before taking charge of their agencies.

Duffy’s DOT is also poised to charter new ground in federal AV regulation. The secretary has stated that AV developers need a clear national framework to innovate. And with an AV legal expert like Simshauser to lead NHTSA’s legal operations, the agency may be more likely to sympathize with AV developers.