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Biden administration releases FY 2023 budget proposal

Includes investments in electric vehicles, autonomous vehicles and ADAS

Washington, D.C.—President Joe Biden released his $5.8 trillion budget proposal for fiscal year 2023 this week. The budget proposal builds on the investments made in the Infrastructure Investment and Jobs Act, passed last year, by allocating $105 billion to the U.S. Department of Transportation.

“The investments in the President’s Budget make traveling safer, easier, cleaner, and more affordable for the American people,” said U.S. Transportation Secretary Pete Buttigieg. “From roads, tunnels and bridges to airport and port improvements, electric vehicle chargers, safe bike lanes, and more, we are building a first-rate transportation system for all Americans.”

Included in the budget are important projects for independent vehicle repair shops related to vehicle safety, autonomous vehicles, electric vehicle deployment, and emissions reductions.

The budget includes $49.8 million for the National Highway Traffic Safety Administration’s (NHTSA) Vehicle Safety Research program, which studies vehicle improvements and other technical advances that can better protect people in a crash and reduce the likelihood of crashes. Portions of the $49.8 million will go toward Advanced Driver Assistance Systems (ADAS) and Automated Driving Systems (ADS) research that facilitates innovation and development of new tests, tools, and procedures to properly evaluate the safety of new technologies surrounding highly and fully automated vehicles.

In the proposal, the Federal Highway Administration (FHWA) is allocated $1 billion in advance appropriations to work with the newly formed Joint Office of Energy and Transportation to implement the new National Electric Vehicle Infrastructure (NEVI) Formula Program. This program will assist states in creating a network of convenient, affordable, reliable, and equitable electric vehicle charging stations along the Interstate Highway System to build designated Alternative Fuel Corridors.

The FHWA budget also includes $400 million to implement the new Charging and Fueling Infrastructure Grants Program, which is designed to further increase electric vehicle charging access in locations throughout the country through competitive grants, and $1.3 billion for the Carbon Reduction Program, which will provide formula grants to states to reduce transportation emissions.

The budget proposal aligns with President Biden’s climate and energy goals and includes $27.5 million in funding for the Corporate Average Fuel Economy (CAFE) program and $14.5 million for the New Car Assessment Program (NCAP). In August 2021, NHTSA responded to President Biden’s Executive Order on Protecting Public Health and the Environment by amending the CAFE standards for vehicles model year 2024-2026 to require increased stringency for fuel efficiency standards.

The release of the President’s budget proposal is the kickoff for the months long budget process. Lawmakers can now begin crafting the legislation that will make up the 2023 federal budget, using President Biden’s proposal to guide them in the Administration’s priorities.

Read the U.S. Department of Transportation Budget Highlights here.

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