July 2025
Executive Summary
With President Trump’s return to office in 2025, the Administration has rapidly advanced a pro-business agenda focused on deregulation, trade policy changes, and infrastructure investment. Key actions include new tariffs, environmental rollbacks, and passage of a major tax and budget bill supporting small businesses and trucking industry investment.
Congress, under Republican control, is prioritizing transportation funding, workforce development, and regulatory reform, while also addressing emerging challenges such as cargo theft and supply chain resilience. At the same time, debates continue over labor policy, environmental standards, and the future of independent contractor classification.
Looking ahead, policymakers will focus on the FY 2026 budget, surface transportation reauthorization, and broader economic and infrastructure priorities, with significant implications for the trucking industry.
New Administration, New Priorities
With the inauguration of President Donald J. Trump in January, Washington entered a new era of policymaking. Returning to office for a nonconsecutive second term, he outlined plans to revise the regulatory, environmental, and labor policies enacted by the previous administration.
The White House moved quickly to implement its agenda, signing a series of executive orders and securing Senate confirmation for the majority of cabinet appointees with minimal opposition from within the Senate Republican majority.
Key early appointments reflect the Administration’s priorities:
- Sean Duffy, a former congressman from Wisconsin, was confirmed as Secretary of Transportation. He has directed the United States Department of Transportation (USDOT) to shift priorities from climate-focused programs to traditional infrastructure projects;
- Lee Zeldin, former congressman from New York, was confirmed as Administrator of the Environmental Protection Agency (EPA) and subsequently announced 31 deregulatory actions, including a rollback of the Greenhouse Gas Phase 3 (GHG3) rules for heavy-duty vehicles established under the previous administration; and
- Lori Chavez-DeRemer, a former Oregon congresswoman and the daughter of a Teamster, was confirmed as Secretary of Labor. She has revised her position on the Protecting the Right to Organize (PRO) Act—legislation aimed at expanding union membership—but is still viewed by some as a labor-friendly appointee within in an broadly pro-business administration
On the policy front, the Trump Administration has focused on reshaping trade policy, including the proposal of a new 10% baseline tariff on most imports and the consideration of additional tariffs on multiple trade partners. These policy changes have influenced supply chain activity, with some importers accelerating shipments to avoid potential import taxes.
With Republican majorities in the House and Senate, the President’s agenda has advanced with limited opposition on Capitol Hill. However, some Republican lawmakers representing competitive states and districts may begin to differentiate their positions as the 2026 midterm elections draw closer. Historically, the party occupying the White House often faces challenges during its first midterm election, which may be influencing the Administration’s accelerated pace in early 2025.
President Signs H.R. 1 into Law
Following its narrow passage in both the Senate and House, the President signed House of Representatives (H.R.) 1—formally titled the One Big Beautiful Bill Act—into law. The comprehensive budget and tax package reflect key components of the Administration’s domestic fiscal agenda and include several provisions relevant to the trucking industry. The bill’s passage came after months of negotiations on both sides of Capitol Hill and sustained efforts by the White House to advance the legislation.
Key provisions relevant to the trucking industry include:
- Extension and expansion of 2017 tax cuts, including the 20% passthrough business deduction (Section 199A), which provides tax relief for small businesses and aims to align their treatment more closely with corporate tax rates;
- Restoration of 100% bonus depreciation for machinery and equipment, supporting investment in newer, safer, more fuel-efficient trucks;
- Expanded Pell Grant eligibility to cover truck driving schools and short-term certification programs; and
- Permanent estate tax relief for family-owned businesses.
An earlier version of the bill included a proposed annual fee on electric and hybrid vehicle owners to support the Highway Trust Fund, but that provision was removed during Senate negotiations.
To secure passage, Congress used the Senate’s budget reconciliation process, a legislative mechanism that enables certain tax and spending measures to advance with a simple majority instead of the usual 60 votes.
In addition to encompassing much of the President’s domestic agenda, the bill also includes an extension of the debt ceiling, a necessary measure to prevent the U.S. government from defaulting on its debt obligations.
Regulatory Rollbacks and Environmental Reversals
Since taking office, the Trump Administration has taken steps to reverse several environmental policies enacted under the previous administration, with backing from Capitol Hill. For example :
- The EPA has rescinded or proposed changes to regulations related to GHG emissions, air quality, and electric truck mandates;
- The Senate voted to revoke waivers previously granted to California, which had allowed the state to implement vehicle emissions standards stricter than federal regulations, including mandates on zero-emission trucks and updated emissions standards for new diesel trucks. In response, California has indicated it plans to challenge the revocation in court, arguing that Congress lacks the authority to overturn the waivers.
Also on the environment front, USDOT has halted the work of the Office of Climate Change and Environment, also known as the Climate Change Center, which was created more than a decade ago and helped states use federal funding for climate projects. The closure occurred amid the Administration’s Department of Government Efficiency (DOGE) effort.
Labor and Workforce Policy Developments
Labor continues to be a focal point in Washington as the White House seeks to balance a pro-business approach with a more neutral stance toward organized labor compared to previous Republican administrations. The U.S. Department of Labor was previously led by a secretary who expressed strong support for California’s AB 5 independent contractor legislation and was critical of the independent contractor classification. In contrast, during recent testimony on Capitol Hill, newly confirmed Secretary of Labor Chavez-DeRemer expressed support for the flexibility offered by the independent contractor classification and that she supported states’ right-to-work laws.
With both sides of Capitol Hill under Republican control, independent contractors are likely to see increased support. The House has already held hearings exploring legislation aimed at preserving the classification, including the Modern Worker Empowerment Act. Meanwhile, Democrat lawmakers have reintroduced the PRO Act which would limit the scope of right-to-work laws and introduce new requirements for employers. The legislation stalled in the previous Congress due to opposition within the Democratic Senate caucus, and its prospects remain uncertain in the current session.
Other labor-related legislation facing significant challenges includes the controversial Guaranteeing Overtime for Truckers Act, which proposes repealing the current overtime exemption for USDOT-regulated truck drivers. The bill has drawn strong opposition from the trucking industry, including the NMFTA, due to concerns that it would substantially alter existing pay structures and lead to increased supply chain costs, potentially affecting end consumers.
Familiar Faces Leading Transportation Committees in House and Senate
The House Transportation & Infrastructure (T&I) Committee welcomed back its longtime chairman to lead the committee in the new Congress, while in the Senate, the former ranking member became chair of the Commerce Committee following Republican gains in the 2024 election.
House T&I Committee: Chairman Sam Graves (R-MO) continues in his role, marking his fourth consecutive term. House Republican rules typically limit committee chairs to three consecutive terms, but in December 2024 the House Republican Steering Committee granted Graves a waiver, citing his experience and the interest in maintaining continuity on infrastructure legislation.
Under Chairman Graves’ leadership, the House T&I Committee has focused on core infrastructure projects such as road and bridge improvements, while also addressing broader issues like supply chain resilience and transportation safety. His extended tenure is expected to provide continuity in shaping transportation policy.
Senate Commerce, Science, and Transportation Committee: Senator Ted Cruz (R-TX) now chairs the Committee in the 119 Congress. In this role, he oversees a wide range of issues, including transportation, communications, and science policy. He has emphasized the importance of regulatory clarity and strategic investments in infrastructure and technology.
Chairman Cruz’s agenda includes efforts to modernize the nation’s transportation systems, enhance safety standards, and support innovation across various sectors under the committee’s jurisdiction. His leadership is expected to play a key role in shaping legislative developments related to transportation and infrastructure.
Infrastructure and Funding in Focus
So far in 2025, committee-level discussions have centered on both funding and policy modernization.
Early-stage negotiations are underway for a new surface transportation reauthorization, with a particular focus on the Highway Trust Fund (HTF), which is projected to become insolvent by 2028. The federal gas tax, the main source of funding for the HTF, has remain unchanged since the Clinton Administration. However, the growing adoption of EVs and fuel-efficient vehicles has led to reduced fuel consumption and, in turn, declining gas tax revenue. Among the funding options being explored are new registration fees for electric and hybrid vehicles.
Other bills under consideration with bipartisan support address industry workforce challenges and regulatory reforms.:
Truck Parking Safety Improvement Act: The bill would establish a $755 million competitive grant program in the USDOT over the next five years for the construction of new truck parking facilities;
Veterans to Trucking Transition Act: Aims to streamline Department of Veterans Affairs (VA) approvals for veteran apprenticeships across multiple states;
Strengthening Supply Chains Through Truck Driver Incentives Act: Offers tax credits of up to $10,000 for eligible new drivers and apprentices; and
Trucker Bathroom Access Act: Would requires facilities to provide restroom access to truck drivers when picking up or delivering goods.
These efforts reflect growing support from both sides of the partisan aisle for improving working conditions and recruitment across the industry.
Cargo Theft Draws Congressional Scrutiny Amid Alarming Spike
Cargo theft has rapidly emerged as a top concern for lawmakers, industry leaders, and law enforcement following a sharp increase in incidents across the country. According to recent estimates, truck cargo theft has risen by 27% year-over-year. It’s estimated that total cargo thefts across all modes of transport are costing the U.S. economy $35 billion annually.
Members of Congress have emphasized the need for improved coordination between federal agencies, state authorities, and private industry to deter theft and recover stolen goods. The Combating Organized Retail Crime Act (CORCA) was reintroduced in April in the Senate by Senators Chuck Grassley (R-IA) and Catherine Cortez Masto (D-NV), and in the House by Representatives David Joyce (R-OH) and Susie Lee (D-NV). CORCA provides essential tools to enhance law enforcement’s ability to combat the increasing prevalence of cargo theft and strategic fraud.
NMFTA supports continued congressional engagement on this issue and will work with policymakers to advocate for solutions that improve cargo security without adding undue burdens to the trucking industry.
Looking Ahead
Congress has several items on its to-do list in the second half of 2025:
Budget: Congress faces a September 30 deadline to adopt a fiscal year (FY) 2026 budget. While the appropriations process typically involved dividing funding responsibilities among 12 subcommittees, that work has not yet begun. As a result, there is growing expectation that Congress may again resort to passing an omnibus spending bill this fall to prevent a government shutdown.
Defense Policy: The National Defense Authorization Act (NDAA), an annual must-pass bill, outlines Pentagon policy for the year ahead. In previous years, members of Congress used the NDAA as a vehicle to advance various policy priorities, including provisions related to transportation.
The second half of 2025 is expected to be just as impactful as the first. NMFTA will continue to closely monitor key policy developments—including legislation affecting supply chains and progress on the next highway bill—to ensure the interests of the industry are represented.
