Welcome to The On-Ramp, the newsletter published by Venable's Autonomous and Connected Mobility Team. The On-Ramp explores legal and policy developments in the world of autonomous and connected vehicles, smart infrastructure, electrification, and other emerging automotive and mobility technologies, from Capitol Hill to the U.S. Department of Transportation and beyond.
Congress returns from recess with several matters to address that will impact the transportation and mobility policy landscape. Lawmakers are moving forward on appropriations negotiations, early surface transportation reauthorization discussions, and agency actions impacting automated and connected vehicle technologies. These developments will shape shorter-term implementation decisions and the longer-term policy frameworks governing emerging transportation technologies.
U.S. Department of Transportation (USDOT)
FHWA Issues Notice on an Automated Vehicle Shuttle Demonstration in Washington, D.C.
On January 12, 2026, the Federal Highway Administration (FHWA) published a sources sought notice titled "Automated Vehicle Shuttle Demonstration in Washington D.C." The notice is focused on market research for information "to determine which organizations are interested and capable of performing the required services" for "an anticipated contract for the Demonstration of an Automated Vehicle Shuttle in Washington D.C." The demonstration would coincide with America's 250th anniversary celebration. The notice stated that FHWA is looking for SAE Level 3 and 4 technologies "that have been adequately tested with the capabilities to safely demonstrate a typical shuttle route" and that the project is focused on providing transit services, informing research program planning, and raising public awareness of industry implementation. Automated shuttle vehicles used must comply with Federal Motor Vehicle Safety Standards, the Americans with Disabilities Act, and FHWA's Buy America regulation, and the shuttle would operate over three months from June to August 2026. Responses are due to FHWA no later than 2pm EST on January 21, 2026.
OST-R Issues Request for Information on its Transportation Research and Development Strategic Plan
On January 12, 2026, USDOT's Office of the Assistant Secretary for Research and Technology (OST-R) published a Request for Information (RFI) seeking input on its transportation research and development strategic plan for Fiscal Years 2026-2030. Under 49 U.S.C. § 6503, the USDOT must develop the plan "to guide future federal transportation research and development activities" at least every five years. The plan must describe how the research and development program would improve mobility of people and goods, reduce congestion, promote safety, improve the durability and extend the life of transportation infrastructure, preserve the environment, preserve the existing transportation system, and reduce transportation cybersecurity risks. The RFI invites public comment on USDOT's research vision, strategic goals, and priorities for the plan, with comments due on February 12, 2026.
FMCSA Renews Warning Beacon Regulations
On January 8, 2026, the Federal Motor Carrier Safety Administration (FMCSA) granted a renewed temporary waiver from three Federal Motor Carrier Safety Regulations (FMCSR) related to warning devices to two autonomous trucking developers. The waiver would be effective from January 10, 2026, to April 9, 2026. Any motor carrier operating a commercial motor vehicle equipped with a Level 4 automated driving system (ADS) was previously availed of this waiver on October 9, 2025, which expired on January 10, 2026. The waiver allows motor carriers to use cab-mounted warning beacons instead of complying with certain FMCSRs on warning device placement, steady-burning lamps, and required warning devices, provided they notify FMCSA and meet specified equipment, operational, and reporting requirements. It follows FMCSA's earlier denial of an exemption request by two autonomous vehicle developers, which was appealed and later dismissed after the waiver was issued.
FMCSA Warning Devices Study
On December 23, 2025, the Federal Motor Carrier Safety Administration (FMCSA) published a notice and request for comments on a proposed information collection request titled "Study of Warning Devices for Stopped Commercial Motor Vehicles." This notice provides a summary of comments received to the 60-day Federal Register notice, published on January 8, 2025, and initiates the 30-day notice and comment period required to move the study forward. The study aims to assess whether and how warning devices influence crash-relevant human performance, particularly because of the increasing focus on automated driving systems, questions surrounding the safety of commercial motor vehicle drivers when deploying warning devices, and the availability of new technology and alternative devices. FMCSA indicates the results could inform future rulemaking and exemption decisions for alternative warning devices. FMCSA requests input on the necessity of the study, revised burden estimates, and ways to improve or streamline data collection. Comments on the information collection are due January 22, 2026.
NHTSA Releases Final Report on FMVSS Considerations for "ADS-Dedicated Vehicles"
On December 11, 2025, the National Highway Traffic Safety Administration (NHTSA) released a report titled "FMVSS Considerations for Vehicles With Automated Driving Systems: Volume 4." The report is the fourth and final in a multi-year series examining how Federal Motor Vehicle Safety Standards (FMVSS) may be technically translated for automated driving systems-dedicated vehicles operating without manual driving controls. Volume 4 focuses on braking and electronic stability control test methods, regulatory text for multiple FMVSS, and potential barriers related to unconventional seating configurations. The report builds on earlier volumes released in 2020, 2021, and 2025. NHTSA issued a Request for Comment (RFC) on all four volumes of the report on December 15, 2025. Comments on the RFC are due February 13, 2026.
USDOT Unveils "Freedom Means Affordable Cars" Initiative
On December 3, 2025, USDOT Secretary Sean Duffy and President Trump announced the "Freedom Means Affordable Cars" initiative to reset the National Highway Traffic Safety Administration's (NHTSA) corporate average fuel economy (CAFE) standards. The proposal follows Secretary Duffy's January 2025 memorandum, "Fixing the CAFE Program," which directs NHTSA to reset the CAFE standards for model years (MYs) 2022-2031. The announcement states that the proposal projects savings of $1,000 on the average cost of a new vehicle, with a total of $109 billion saved over five years. NHTSA reasons that resetting the CAFE standards will lower the cost of newer, safer vehicles and therefore reduce injuries and fatalities.
On December 5, 2025, NHTSA published a Notice of Proposed Rulemaking (NPRM) with proposed fuel economy standards. The proposed changes to the CAFE program apply to light-duty vehicles for model years 2022-2026 and model years 2027-2031. NHTSA proposes to increase the standard by 0.5% per year for passenger cars from MYs 2023-2026, followed by a 0.25% increase per year through MY 2031. For light trucks, NHTSA proposes a 0.5% increase for MYs 2023 through 2026, followed by a 0.7% increase for MY 2027, and 0.25% from MY 2029 until MY 2031. The NPRM also eliminates the CAFE credit trading program starting in MY 2028. Comments on the NPRM are due on January 20, 2026.
White House
President Signs EO Targeting State AI Laws
On December 11, 2025, President Trump signed an Executive Order (EO) titled "Ensuring a National Framework for Artificial Intelligence." The EO directs several federal agencies to take steps toward a "minimally burdensome" national standard for artificial intelligence (AI) regulation and to address the current patchwork of state AI laws. The order instructs agencies to evaluate and, where appropriate, challenge or preempt state AI laws that are inconsistent with the policy established by the EO. Specific direction for agencies includes an "AI Litigation Task Force" established by the Department of Justice, a review of "onerous" state AI laws by the Department of Commerce, potential action by the Federal Communications Commission on federal reporting and disclosure standards, and a policy statement on AI by the Federal Trade Commission under the Federal Trade Commission Act. The order also calls for developing of legislative recommendations establishing a "uniform" federal AI regulatory framework and directs agencies to assess whether discretionary grants may be conditioned on state compliance with the EO's policy objectives.
Congress
Hearings
House Energy and Commerce Committee Hearing on Automotive Legislative Proposals
On January 13, 2026, the House Energy and Commerce Committee's Subcommittee on Commerce, Manufacturing, and Trade convened a hearing titled "Examining Legislative Options to Strengthen Motor Vehicle Safety, Ensure Consumer Choice and Affordability, and Cement U.S. Automotive Leadership." The purpose of this legislative hearing was to consider proposals put forward by subcommittee members to address challenges in the automotive marketplace. The hearing examined 16 automotive-related bills, including the Safely Ensuring Lives Future Deployment and Research in Vehicle Evolution (SELF DRIVE) Act of 2026, which would create a federal framework for autonomous vehicles (AVs) and the ADAS Functionality and Integrity Act, which is focused on advanced driver assistance system tolerances, modifications, and calibration. The primary areas of focus of the legislation involved components of a federal AV framework, regulatory tools for differentiating between levels of automation, and efforts to modernize the National Highway Traffic Safety Administration (NHTSA) and New Car Assessment Program (NCAP).
House Select Committee on China Hearing on China's Auto Threat to America
On December 11, 2025, the House Select Committee on the Chinese Communist Party (CCP) held a hearing titled "Trojan Horse: China's Auto Threat to America." Witnesses at the hearing included: (1) Elaine Dezenski, Senior Director and Head of the Center on Economic and Financial Power, Foundation for Defense of Democracies; (2) Charles Parton OBE, Senior Associate Fellow, Royal United Services Institute; and (3) Peter Ludwig, Co-Founder and Chief Technology Officer, Applied Intuition. The purpose of the hearing was to examine the growth of the Chinese automotive industry and its implications for the U.S. economy and national security. Witnesses and members discussed the impact of the CCP's economic tactics on the global automotive supply chain and how the U.S. can build a framework alongside global allies to compete with China.
Legislative Priorities
THUD Appropriations
As Congress returns, work will continue to pass a series of spending bills, including the Fiscal Year 2026 (FY26) Transportation, Housing, and Urban Development (THUD) Appropriations Act. USDOT and other THUD-funded agencies are currently operating under a continuing resolution that extends FY25 funding levels through January 30, 2026. Both the House and Senate Appropriations Committees have advanced FY26 THUD bills with differing topline funding levels, and each includes provisions related to automated, connected, and electric vehicle policy. The House report directs the Secretary of Transportation to establish a national framework for the regulation of automated vehicle (AV) technologies, encourages updates to FMVSS to better accommodate AV deployment, and promotes a public education initiative on AVs. The Senate report includes dedicated funding for NHTSA's Office of Automation Safety to support the safe deployment of AVs and directs USDOT to issue updated guidance for the National Electric Vehicle Infrastructure formula program, which the Federal Highway Administration issued following publication of the Senate report. Both the funding differences and policy provisions must be reconciled this month to avoid a funding lapse.
Surface Transportation Reauthorization
The current authorizing legislation for surface transportation expires September 30, 2026, setting up discussions around the next surface transportation reauthorization to take place early this year. The bill will set longer-term policy direction for federal highway, transit, and mobility programs. While no formal legislative text has emerged, lawmakers have publicly expressed [TB1] that markups should take place this spring. Rep. Sam Graves (R-MO), Chairman of the House Transportation and Infrastructure Committee, has indicated that the House bill markup should take place early this year, while Sen. Shelley Moore Capito (R-WV), Chairwoman of the Senate Environment and Public Works Committee, expects the Senate bill markup to occur in early March.
Autonomous Vehicles
Congress continues to express interest in legislation surrounding autonomous vehicles (AVs). In May 2025, Sen. Cynthia Lummis (R-WY) introduced S. 1798, the "Autonomous Vehicle Acceleration Act of 2025," which would direct USDOT to modernize Federal Motor Vehicle Safety Standards and to develop a national framework to support the deployment of Level 4 and Level 5 AVs. In July 2025, Rep. Vince Fong (R-CA) introduced H.R. 4661, "AMERICA DRIVES Act," which establishes a national framework for AV trucking. In December 2025, Sens. Edward Markey (D-MA) and Richard Blumenthal (D-CT) introduced S. 3536, "Stay in Your Lane Act," which prohibits self-driving technology in cars from operating outside their operational design domain (ODD). Most recently, House Energy and Commerce Committee leaders have indicated that the bipartisan SELF DRIVE Act, introduced in draft form by Reps. Bob Latta (R-OH) and Debbie Dingell (D-MI), is being positioned as the central framework for comprehensive AV legislation. The upcoming Surface Transportation Reauthorization, including the House Energy and Commerce Committee's motor vehicle safety title, provides a key near-term opportunity for consideration of AV legislation.
Artificial Intelligence
Toward the end of 2025, several members of Congress introduced artificial intelligence (AI) related bills. In September 2025, Senate Commerce Committee Chair Ted Cruz (R-TX) introduced S. 2750, the Strengthening Artificial Intelligence Normalization and Diffusion by Oversight and eXperimentation ("SANDBOX") Act, which would establish a federal AI regulatory sandbox program through the Office of Science and Technology Policy. Other bills introduced in 2025 include the CREATE AI Act of 2025 (H.R. 2385), which would support AI research infrastructure, and the AI Lead Act (S. 2937), which would establish legal standards for advanced AI products. Congressional leaders have indicated a continued interest in establishing a comprehensive AI framework. AI legislation could encompass autonomous vehicles depending on how AI is defined, particularly related to automated decision-making and machine learning systems.
*The authors would like to thank Tess Brennan and Nicole McCormick for their assistance writing this newsletter.