When Congress passed the Inflation Reduction Act in 2022, it was the largest climate bill in U.S. history, with major incentives for electric vehicle production and adoption. In its wake, investment in the U.S. electric vehicle industry accelerated. But in 2025, President Donald Trump’s so-called One Big Beautiful Bill Act eliminated most of the incentives, and U.S. investment collapsed.
Hitting the brakes on electric vehicles will clearly mean less progress in reducing transportation emissions and less strategic U.S. leadership in a key technology of the future. But in a new study, my colleagues at Carnegie Mellon University and I find that fewer electric vehicles will also mean less investment to clean up the electricity sector.
