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Deregulating Transportation: Efficiency Gains or Environmental Losses?

Deregulating Transportation: Efficiency Gains or Environmental Losses?

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The Department of Transportation is making headlines this week after Secretary Sean P. Duffy announced the completion of another major milestone for operations at Newark Liberty Airport and a series of bold deregulatory actions shaping the nation’s transportation landscape. The biggest news: the DOT has added 848 new miles and 14 sponsors to the U.S. Marine Highway Program, aiming to expand America’s navigable waterways, streamline the movement of goods, and boost the economy. Secretary Duffy called it a "game-changer for American commerce," positioning our ports and rivers as critical arteries for future growth.

At the same time, the DOT has launched an aggressive campaign to slash federal red tape. In May, Secretary Duffy unveiled 52 deregulatory moves across the Federal Highway Administration, the Federal Motor Carrier Safety Administration, and the National Highway Traffic Safety Administration, eliminating over 73,000 words of regulation from the books. Among the changes: removing duplicative contract provisions and streamlining requirements for military drivers operating commercial trucks. Secretary Duffy said, “Big government has been a big failure. These are common sense changes that will help us build a more efficient government that better reflects the needs of the American people.”

Policy-wise, the Trump administration’s approach means a distinct pivot away from climate and equity-focused transportation initiatives. Funding and regulatory priorities are now geared toward economic efficiency and user-based funding models, such as local transportation taxes, rather than projects targeting emissions reduction or social equity. According to Holland & Knight, state and local governments must now align future projects with these new federal criteria, possibly reworking plans to maintain access to funding.

For American businesses, fewer regulations mean lower compliance costs and more flexibility—especially for trucking companies now facing changes to electronic logging device rules and reduced paperwork. However, advocates for environmental and social initiatives are warning that the rollback of climate and diversity policies could limit access to federal support and slow progress in those areas.

Meanwhile, the DOT is keeping a sharp focus on public safety. This month, the department called out the New York Metropolitan Transportation Authority on its response to violent crime on transit systems, signaling stricter oversight and new expectations for local agencies to address passenger safety.

Consumers may also notice changes when traveling. The latest Air Travel Consumer Report shows ongoing efforts to monitor airline performance, mishandled baggage rates, and disability accommodations. And starting August 1, any entity failing to comply with new rules for air travelers using wheelchairs could face enforcement action, giving airlines a tight deadline to upgrade their policies.

Looking ahead, DOT will continue to evaluate federal transportation projects for cost-benefit value while expecting American businesses and local governments to adapt quickly to the updated regulatory environment. Public meetings, such as the upcoming Aviation Consumer Protection Advisory Committee session, remain open for citizen feedback.

If you want to learn more or share your views, visit transportation.gov for updates and details on how to get involved. Thanks for tuning in, and don’t forget to subscribe. This has been a quiet please production, for more check out quiet please dot ai.

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