Senator JD Vance (R-OH) has unveiled a new piece of legislation, titled the Drive American Act, aimed at revoking over $100 billion in existing electric vehicle (EV) subsidies and fostering the development of domestic automotive manufacturing.
“Today I introduced legislation to end the Biden admin’s subsidies for Chinese made cars and invest in the American auto industry,” the Ohio senator said in a Thursday post on X, formerly Twitter.
The Act is positioned to replace the current subsidies with the America First Vehicle Credit, a move designed to bolster the production of gas-powered vehicles within the United States.
Senator Vance has been vocal about his concerns regarding the Biden administration’s EV subsidies, asserting that they “penalize UAW workers who build popular, gas-powered vehicles and the American consumers who wish to buy them.”
He emphasized that the existing policies are detrimental to American workers and consumers, favoring the production of electric vehicles overseas.
“Right now, the official policy of the Biden administration is to spend billions of dollars on subsidies for electric vehicles made overseas,” Sen. Vance stated, highlighting his stance on prioritizing domestic manufacturing. “If we’re subsidizing anything, it ought to be Ohio workers – not the green energy daydreams that are offshoring their jobs to China.”
The Drive American Act is poised to incentivize the onshoring of automotive manufacturing to high-wage factories utilizing American parts and labor.
It is a direct response to what Senator Vance describes as the “misguided policies of the Biden administration,” and seeks to secure a prosperous future for American autoworkers by promoting vehicles made in the United States.
The America First Vehicle Credit, integral to the Act, aligns with the automotive content requirements of President Trump’s U.S.-Mexico-Canada Agreement (USMCA).
It proposes credits of up to $7,500 for new gas- or diesel-powered vehicles, including hybrids, contingent on a vehicle’s payload and seating capacity.
To be eligible, vehicles must be assembled in the United States, using American parts, by well-compensated American workers.
The credit is applicable for individuals with an income below $150,000 or married couples earning less than $300,000.
Vehicles like Jeep, manufactured by UAW workers in the Toledo Assembly Complex, would qualify for the America First Vehicle Credit, provided that the workers at the facility receive a significant pay raise.
The Drive American Act is set to repeal several EV tax credits that were either created or expanded by the Inflation Reduction Act.
These include the Clean Vehicle Credit, the Credit for Previously Owned Electric Vehicles, the Credit for Commercial EVs, and the Alternative Fuel Vehicle Refueling Property Credit, according to Vance’s press release.
Senator Vance criticized former U.S. Senator for Delaware, Joe Biden, for his support of the North Atlantic Free Trade Agreement (NAFTA), claiming it resulted in the offshoring of hundreds of thousands of jobs.
He pointed out that, in the aftermath of NAFTA, numerous American auto manufacturers have opted to construct automobiles in Canada and Mexico, rather than domestically.
“We can secure a bright future for American autoworkers by passing this legislation and reversing the misguided policies of the Biden administration,” concluded Senator Vance, emphasizing the importance of supporting domestic automotive manufacturing and American workers over international electric vehicle production.
Read the bill here:
