U.S. EV Incentive Rollbacks Shift Billions to Gas Vehicles, Slow Clean Energy Progress

The transition to electric vehicles (EVs) in the U.S. faces significant challenges beyond just increasing renewable energy production, with a new Northwestern University study highlighting critical transmission grid congestion that limits delivery of clean electricity to EV charging stations, potentially increasing reliance on fossil fuels. Meanwhile, policy shifts under President Donald Trump's administration, including the elimination of major EV incentives via the One Big Beautiful Bill Act and rollbacks of emissions standards, have reversed earlier progress from the 2022 Inflation Reduction Act, leading to a collapse in EV investments and encouraging automakers to pivot back toward gasoline-powered vehicles. This policy environment has generated financial benefits for Detroit automakers like General Motors, Ford, and Stellantis, enabling them to cut EV production plans and reallocate funds toward traditional internal combustion engine vehicles and hybrids, while also saving billions on regulatory credit purchases and emissions penalties. Despite these setbacks, a University of Michigan study confirms that EVs remain significantly greener than internal combustion engine vehicles across the U.S., producing 63 to 73 percent fewer greenhouse gas emissions over their lifespans, especially when charged from cleaner power grids. The combined scientific findings emphasize that while EVs are a critical technology for reducing transportation emissions, maximizing their environmental benefits requires both infrastructure upgrades to the transmission grid and sustained supportive federal policies. Without addressing these grid limitations and policy reversals, the U.S. risks falling behind global competitors, particularly China, which continues to dominate EV supply chains and market investments.