The Electric Vehicle Mandate Is Officially Dead — And It’s About Time!
The federal electric vehicle (EV) mandate has finally come to an end. And honestly, this change couldn’t have happened sooner.
As of September 30, the majority of leading automakers no longer qualify for the $7,500 federal tax credit on electric vehicles. For years, this subsidy has hidden the real cost of EVs and artificially boosted demand for cars that many Americans never truly wanted.
But here’s where it gets controversial: thanks to the leadership of former President Trump and the reforms introduced in the One Big Beautiful Bill Act, the electric vehicle market is now being forced to stand on its own two feet — and it’s clearly struggling to keep balance.
Interestingly, there was never a single, explicit federal bill mandating electric vehicles. Instead, the government pushed this shift through a mix of regulatory pressure and financial incentives. The most damaging of these was the steady tightening of Corporate Average Fuel Economy (CAFE) standards. These rules imposed heavy fines on automakers whose fleets didn’t meet certain emissions targets — targets that many argue were arbitrary and unrealistic.
These penalties didn’t just affect car manufacturers; they trickled down to consumers in the form of higher prices for traditional gas-powered vehicles. Even when buyers showed a clear preference for trucks, SUVs, and sedans with internal combustion engines, automakers had to subsidize electric vehicles to avoid costly fines. Some companies passed these penalties directly onto customers, while others quietly increased prices across their entire lineup. Either way, American drivers ended up footing the bill.
Now, those days are behind us. The One Big Beautiful Bill Act eliminated CAFE penalties, ending a decades-long policy that effectively punished gas-powered cars through indirect means. This is a huge win for both American drivers and vehicle manufacturers. But there’s more.
The $7,500 electric vehicle tax credit — often seen as the industry’s lifeline — is being phased out for most automakers. New Treasury Department rules, finalized earlier this year, require EVs to meet strict sourcing and content standards to qualify for the credit. This means that a large portion of the market will lose access to this subsidy. While some manufacturers are working to comply, the overall message is clear: the federal government is no longer artificially propping up demand for electric vehicles.
This moment represents both a symbolic and practical end to the electric vehicle mandate. After years of top-down government mandates, pressure from Environmental, Social, and Governance (ESG) campaigns, and regulatory battles, the free market is finally back in control. The American auto industry — once a global icon of innovation and freedom — can begin to recover from the damage inflicted by climate-focused planners and corporate greenwashing.
And this is the part most people miss: this recovery is desperately needed. EV sales are slowing down, inventories are piling up, and resale values are plummeting. Legacy automakers like Ford and General Motors have already started scaling back or canceling their electric vehicle investments, quietly admitting what many have suspected for years — the business case for mass EV adoption simply doesn’t add up. When government subsidies vanish, so does the illusion of demand.
None of this should come as a surprise. Americans never asked for this forced transition. They were told it was inevitable, that the future was battery-powered — regardless of whether the charging infrastructure was ready, whether the minerals could be sourced responsibly, or whether the electrical grid could handle the increased load. All legitimate concerns were dismissed as "anti-science" or worse. But now, the real science — economics — has spoken.
Electric vehicles may have a role in the market, but that role must be earned, not mandated. If EVs truly offer better value to consumers, they shouldn’t need subsidies, price controls, or federal pressure campaigns. Let the best vehicle win on its own merits.
This moment also marks a significant pushback against the broader climate industrial complex. For too long, Washington has picked winners and losers under the guise of "decarbonization." In reality, this approach empowered foreign competitors like China, penalized American industry, and forced working-class Americans to subsidize someone else’s vision of virtue. By dismantling the electric vehicle mandate, the Trump administration has taken a bold step toward restoring accountability and common sense in energy and environmental policy.
Of course, the work isn’t finished. States still need to roll back their own mandates and fleet purchase quotas. Congress should eliminate remaining tax code carve-outs and handouts. And automakers must learn from this challenging chapter and stop chasing the approval of ESG activists and unelected regulators.
But for now, let’s take a moment to celebrate what’s been achieved. The electric vehicle mandate is dead. The market is healing. And once again, Americans are free to choose the vehicles they want to drive.
What do you think? Is this the right direction for the auto industry and consumers? Or are we missing out on a cleaner, greener future by stepping back? Share your thoughts below — the debate is just getting started.
Jason Isaac, CEO of the American Energy Institute and former four-term Texas state representative.
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