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.
Federal agencies and Congress advanced several transportation and mobility policy initiatives in recent months, with a particular focus on autonomous vehicle (AV) deployment, vehicle safety, and infrastructure modernization. The U.S. Department of Transportation (USDOT) and the National Highway Traffic Safety Administration (NHTSA) moved forward with rulemakings, strategic planning, budget proposals, and safety initiatives related to automated driving systems (ADS), freight movement, and roadway safety. Meanwhile, Congress began work on surface transportation reauthorization legislation that includes several provisions affecting AVs, automated commercial motor vehicles, foreign technology restrictions, and digital infrastructure, reflecting bipartisan interest in shaping the future of transportation policy.
U.S. Department of Transportation
NHTSA Advances Autonomous Vehicle Regulatory Initiatives
The National Highway Traffic Safety Administration (NHTSA) has recently taken steps to advance regulatory reforms for automated driving systems (ADS) identified in both the Office of Information and Regulatory Affairs' (OIRA) Spring 2025 Unified Agenda of Regulatory and Deregulatory Actions (Unified Agenda) and NHTSA's July 2025 research report on updating standards for ADS-equipped vehicles. These actions reflect continued federal efforts to modernize vehicle safety regulations and exemption processes for autonomous vehicles (AVs) and ADS-equipped vehicles.
On May 6, 2026, OIRA received a proposed rule from NHTSA titled "Modernization of Federal Motor Vehicle Safety Standard (FMVSS) No. 135 to Accommodate ADS-Equipped Vehicles." FMVSS No. 135, "light vehicle brake systems," establishes requirements for service brake and associated parking brake systems to ensure safe braking performance under normal and emergency driving conditions. The rulemaking is part of NHTSA's broader effort to update FMVSS requirements for ADS-equipped vehicles without manual controls, also known as ADS-dedicated vehicles. NHTSA has already proposed several rulemakings to that effect, including updating FMVSS No. 102, "Transmission shift position sequence, starter interlock and transmission braking effect"; FMVSS No. 103, "Windshield defrosting and defogging systems"; FMVSS No. 104, "Windshield wiping and washing systems"; and FMVSS No. 108, "Lamps, reflective devices, and associated equipment."
Separately, on April 22, 2026, OIRA received a notice from NHTSA titled "Interim Part 555 Guidance and Enhanced Application Instructions," addressing the agency's exemption process for vehicles that do not fully comply with existing FMVSS requirements. Under the Part 55 exemption program, manufacturers may sell up to 2,500 motor vehicles per year that do not fully comply with the FMVSS for a 2- or 3-year period. To qualify, the manufacturers must demonstrate that their vehicles provide a level of safety equivalent to that of FMVSS-compliant vehicles and that the exemption is in the public interest. NHTSA previously announced plans to streamline the Part 555 exemption process as part of the Agency's Automated Vehicle (AV) framework and recently sought public comment on an exemption application submitted by an AV company.
NHTSA Publishes Final Rule on Event Data Recorders
On May 18, 2026, the National Highway Traffic Safety Administration (NHTSA) published a final rule to delay implementation of expanded Event Data Recorder (EDR) pre-crash data capture requirements and adopt a four-year phase-in compliance schedule beginning September 1, 2028. A December 2024 final rule had increased the required pre-crash recording duration from 5 seconds to 20 seconds and the sampling frequency from 2 Hz to 10 Hz for vehicles equipped with EDRs. Following petitions for reconsideration from industry groups and manufacturers citing engineering and hardware challenges, NHTSA proposed a phased implementation timeline in a November 2025 notice of proposed rulemaking.
Under the final rule, manufacturers must comply with the updated requirements on a phased basis: 25 percent of applicable vehicles beginning September 1, 2028, increasing annually to full compliance by September 1, 2031. Small-volume manufacturers and certain multi-stage vehicles receive additional time to comply. The rule is effective June 17, 2026, and petitions for reconsideration are due by July 2, 2026.
USDOT Releases National Freight Strategic Plan
On May 18, 2026, the U.S. Department of Transportation (USDOT) released the 2026 National Freight Strategic Plan (NFSP), a multi-year strategy to modernize the U.S. freight network. USDOT states that the updated NFSP will be used to inform infrastructure planning, improve freight system efficiency, strengthen public-private partnerships, and identify freight data needs to support decision making.
The plan outlines six strategic goals: (1) safety; (2) efficiency; (3) security; (4) resiliency; (5) innovation; and (6) capable workforce. The NFSP highlights the potential role of automated commercial motor vehicles in transforming freight movement. The plan further states that USDOT will promote broader deployment of safety technologies across freight modes, including advanced driver assistance systems and automated braking technologies for trucks.
NHTSA Launches "Pathways to Safer Streets" Initiative
On April 21, 2026, the National Highway Traffic Safety Administration (NHTSA) announced its newest roadway safety initiative, titled "Pathway to Safer Streets" (P2SS). The P2SS action plan includes eight strategies aimed at targeting the leading causes of traffic fatalities, including impairment, speeding, distraction, and lack of seat belt use. Specifically, the action plan involves eight core pathways: (1) reengage law enforcement; (2) reduce excessive speeding; (3) prevent impaired driving; (4) leverage state highway safety offices; (5) expand prehospital blood transfusion programs; (6) mobilize a national partnership strategy; (7) increase occupant protection use; and (8) reduce distracted driving. The announcement also contains relevant resources for each of the eight strategies, including grant opportunities and existing NHTSA safety resources.
FMCSA Publishes Notice and Request for Comment on Exemption Petition
On April 14, 2026, the Federal Motor Carrier Safety Administration (FMCSA) released a request for comment (RFC) on an exemption petition from an autonomous trucking company for a five-year exemption from the warning device requirements in 49 CFR 392.22(b), 49 CFR 393.25(e), and 49 CFR 393.95(f). The exemption would allow Level 4 automated driving system (ADS)-equipped commercial motor vehicles (CMVs) to use a set of cab-mounted warning beacons in lieu of manually placed warning triangles. The company is currently operating under a limited waiver from the warning device requirements, and the current waiver expires on July 9, 2026. The RFC states that the exemption would apply to all motor carriers operating Level 4 ADS-equipped CMVs who notify FMCSA in writing prior to operating under the exemption. Comments on this exemption closed on May 15, 2026.
NHTSA Publishes Interim Final Rule on Seat Belt Reminder Systems
On April 6, 2026, the National Highway Traffic Safety Administration (NHTSA) published an interim final rule (IFR) amending the seat belt warning requirements in Federal Motor Vehicle Safety Standard (FMVSS) No. 208, "Occupant crash protection," in response to petitions for reconsideration of the January 2025 final rule. The IFR delays the compliance dates for amendments made to the rule in 2025 and makes some technical clarifications to the regulatory text, while denying other requested changes, including modifications related to warning visibility in automated driving system-equipped vehicles. Comments on the IFR closed on May 21, 2025.
USDOT Releases FY27 Budget Requests
On April 3, 2026, the U.S. Department of Transportation (USDOT) released the Fiscal Year 2027 (FY27) budget requests for all USDOT operating administrations. These requests outline how the operating administrations intend to use funds that will be appropriated by Congress and offer insight into the agencies' priorities and how they align with those of the administration. The budget includes several provisions related to automated vehicles (AVs) and vehicle safety:
- National Highway Traffic Safety Administration (NHTSA). NHTSA is requesting $1.3 billion in FY27 funds for vehicle and behavioral safety work, including funding for state grants, vehicle safety, and behavioral safety initiatives. Key priorities include reforming the Corporate Average Fuel Economy (CAFE) program and advancing an AV framework. Funding would support research on automated driving systems (ADS) and advanced driver assistance systems (ADAS), including safety performance, cybersecurity risks, and behavioral research.
- Federal Highway Administration (FHWA). FHWA is requesting $66.2 billion to support highway and bridge investment, with priorities including system performance, resiliency, and project delivery. The FY27 proposal would cancel unobligated funds from fiscal years 2022-2026 for both the National Electric Vehicle (NEVI) Formula Grant Program and the Charing and Fueling Infrastructure (CFI) Discretionary Grant Program.
- Federal Motor Carrier Safety Administration (FMCSA). FMCSA is requesting $946 million for a truck and bus safety program, with funding requests including support for driver behavior, fatigue, and truck parking. FMCSA's budget request also includes continued research into automated commercial motor vehicles and future rulemaking to support safe deployment.
USDOT Publishes FY 2026-2030 Strategic Plan
On April 3, 2026, the U.S. Department of Transportation (USDOT) released the Department's Strategic Plan (Strategic Plan) for Fiscal Years 2026-2030. The Strategic Plan describes the Department's mission, vision, and strategic goals for building a safer, stronger, and more efficient transportation system. The development of the Strategic Plan was informed, in part, by the Department's request for information published in August 2025. The Strategic Plan is organized around four strategic goals: (1) safety; (2) infrastructure; (3) innovation; and (4) efficiency.
Regarding the innovation strategic goal, strategic objectives include reducing regulatory burden, enabling transportation technology development and adoption, and investing in transformative technologies. USDOT states that it will achieve those objectives through strategies that include, but are not limited to, streamlining and clarifying regulation, removing outdated or ineffective requirements, and moving forward on an automated vehicle framework.
NHTSA Releases Early Estimates of Traffic Fatalities in 2025
On April 1, 2026, the National Highway Traffic Safety Administration (NHTSA) released early estimates of traffic fatalities in 2025. A statistical projection of 2025 traffic fatalities shows an estimated 36,640 people died in motor vehicle traffic crashes, a decrease of about 6.7 percent compared with the 39,254 fatalities reported in 2024. Additionally, vehicle miles traveled (VMT) increased by about 29.8 billion miles in 2025, which lowered the national fatality rate per 100 million VMT to 1.10, the second lowest fatality rate in recorded history. The announcement acknowledges that strengthened partnerships with law enforcement, public education related to distracted and impaired driving, and actions to improve vehicle affordability have collectively improved roadway safety.
Other Agencies
NTSB Publishes New Resources Page on "Advanced Driver Assistance Systems and Automated Driving Systems"
On April 22, 2026, the National Transportation Safety Board (NTSB) released new resources on an updated webpage focusing on advanced driver assistance systems (ADAS) and automated driving systems (ADS). The resources include definitions of the levels of driving automation, a "Safety Issues" section, key safety recommendations from the NTSB to the U.S. Department of Transportation (USDOT), the National Highway Traffic Safety Administration (NHTSA), states, and vehicle manufacturers, as well as information on related investigations involving partial driving automation and ADS-equipped vehicles.
The NTSB identifies safety concerns across vehicle automation levels, noting that basic driver assistance systems (Levels 0-1) can reduce crashes and should be standard, while Level 2 systems face issues like limited federal guidance, inconsistent driver monitoring, and incomplete incident reporting. For higher-level automated systems (Levels 3-5), challenges include system limitations, driver complacency, and weak safety oversight. NTSB recommends, among other measures, that USDOT issue clear guidance for Level 2 systems and adopt measures such as improved crash reporting, driver monitoring requirements, and stronger safety assessment processes.
White House
White House Releases Fiscal Year 2027 Budget Requests
On April 3, 2026, the White House Office of Management and Budget released President Trump's Fiscal Year 2027 (FY27) spending requests. The total discretionary spending request-$2.2 trillion- represents a 21% increase over current spending, largely driven by a $1.5 trillion request for defense funding. The budget requests $73 billion in net cuts for non-defense discretionary programs, a 10% cut from current levels. The budget includes $26.6 billion for the U.S. Department of Transportation (USDOT), a 6.2% increase from the 2026 enacted level, aimed at advancing the "Golden Age of Transportation" through infrastructure investment, modernization, and efficiency.
Key transportation investments include funding for major infrastructure projects, upgrades to air traffic control systems, maritime programs, and improvements in Washington, DC. The proposal also seeks to cut or eliminate several programs, including for transit, electric vehicle charging, and certain grant initiatives.
Congress
Legislative Updates
House Committee Publishes Text of Surface Transportation Reauthorization Bill
On May 19, the chairman and ranking member of the House Transportation and Infrastructure (T&I) Committee published text of a five-year surface transportation reauthorization (STR) bill, titled the Building Unrivaled Infrastructure and Long-term Development for America's 250th Act (BUILD 250 Act). The bill authorizes $580 billion in funding for various highway, transit, rail, infrastructure, and safety programs. The bill also includes a federal safety framework for automated driving system (ADS)-equipped commercial motor vehicles (CMVs). The framework would require manufacturers to meet all applicable safety standards, demonstrate competencies through a safety case, and adhere to reporting requirements. The text also includes a provision to require the Transportation Research Board (TRB) to conduct a study on autonomous vehicle accessibility and a provision requiring the Government Accountability Office (GAO) to assess what changes related to the National Highway Traffic Safety Administration's (NHTSA) incident data collection system and practices are necessary for the safe deployment of ADS-equipped vehicles.
The bill would also prohibit the Department of Transportation from procuring or funding certain foreign-made LiDAR technology, subject to limited waivers or safety exceptions. It would also impose annual federal registration fees of $130 for electric vehicles and $35 for hybrid vehicles, with scheduled increases beginning in 2029. Additional provisions would expand eligibility under the Congestion Mitigation and Air Quality Improvement program to include advanced transportation, congestion management, and digital infrastructure projects, while maintaining eligibility and a $1 billion set-aside for certain zero-emission vehicle projects. The bill also proposes changes to the Department of Transportation's environmental review and permitting processes under the National Environmental Policy Act (NEPA).
The House T&I Committee held a markup on the text on May 21, approving the bill by a 62-2 vote. Other House and Senate committees with jurisdiction over surface transportation-including House Energy and Commerce, Senate Commerce, Science, and Transportation, and Senate Environment and Public Works-are expected to release texts of their portions of the broader surface transportation reauthorization bill in the coming months.
House Energy and Commerce Markup
On May 21, 2026, the House Energy and Commerce Committee held a markup of 16 bills, including an amended version of the Motor Vehicle Modernization Act of 2026. The committee advanced the total set of bills for full House consideration. During the hearing, Representative Bob Latta (R-OH) introduced an amendment to the Motor Vehicle Modernization Act that would have established a federal framework for autonomous vehicles (AVs). His amendment, the SELF DRIVE Act, had been considered by the Commerce, Manufacturing, and Trade subcommittee at a previous hearing. Members of the Committee expressed support for AV legislation but expressed that more work on the language was needed. Members agreed to continue working on the text into the summer following recess.
House and Senate Introduce the Connected Vehicle Security Act
On April 29, 2026, Senators Bernie Moreno (R-OH) and Elissa Slotkin (D-MI) introduced the Connected Vehicle Security Act of 2026 (the Act), and on May 7, 2026, Representatives John Moolenaar (R-MI) and Debbie Dingell (D-MI) introduced the House companion. The Act would prohibit the importation, manufacture, sale, resale or introduction into interstate commerce of connected vehicles (CVs), the incorporation of certain types of "covered software" (including automated driving system software) into vehicles sold or used in the United States, and certain types of CV hardware produced in, or by entities owned or controlled by, China, Russia, Iran, or North Korea. Additionally, the Act would codify or expand on many aspects of the Bureau of Industry and Security's (BIS) Connected Vehicle Rule (15 CFR Part 791, Subpart D), including a requirement for all manufacturers and importers to file Declarations of Conformity certifying that a CV or a piece of CV hardware does not violate the Act's prohibitions.
Hearings
Senate Commerce Hearing on Transportation Technologies and Innovation
On June 9, 2026, the Senate Commerce Subcommittee on Surface Transportation, Freight, Pipelines, and Safety convened a hearing titled "The Need for Speed: How Technological Advances Are Driving Transportation Innovation." The purpose of the hearing was to examine how new technologies can make U.S. transportation networks safer and more efficient and to explore barriers to innovation. Witnesses at the hearing included: (1) Ian Jefferies, president and chief executive officer, Association of American Railroads; (2) Chris Spear, president and chief executive officer, American Trucking Associations; (3) Laura Chace, president and chief executive officer, ITS America; and (4) Cole Scandaglia, deputy director, Department of Political and Legislative Action, International Brotherhood of Teamsters. The conversation between members and witnesses highlighted the importance of advancing a federal autonomous vehicle framework to promote safety and mitigate risks to U.S. economic and national security. Members and witnesses also discussed priorities for a framework regulating autonomous commercial motor vehicles.
Secretary Duffy Testifies before House and Senate Appropriations Committees
On May 19 and May 21, 2026, Secretary of Transportation Sean Duffy testified before the Senate and House Appropriations Subcommittees on Transportation, Housing and Urban Development, and Related Agencies, respectively, to discuss the Department of Transportation's Fiscal Year 2027 budget request. Secretary Duffy was the sole witness at both hearings. In his testimony, Secretary Duffy discussed USDOT's goal of advancing American innovation, highlighting autonomous vehicle (AV) policy as a focus of the agency. The conversation between members and Secretary Duffy across both hearings focused primarily on air traffic control modernization, U.S. maritime dominance, and railroad investment.
States
Legislation
While many state legislatures considered autonomous vehicle (AV)-related bills this session, the majority have now adjourned without enacting such bills. Notably, Colorado Governor Polis recently vetoed bill HB 26-1286, which would have required a human driver to be present in certain heavy-duty AVs until 2031. Governor Polis vetoed a similar bill in 2025. Meanwhile, AV bills were signed into law in two other states this session: in Tennessee, SB 2253 now requires notices of traffic violations committed by an AV to be sent by first class mail to the registered owner of the vehicle. In Utah, SB 292 addresses certain liability standards for AVs.
While most state legislatures have adjourned for the year, a few states continue to consider bills regarding AV operations. In California, AV-related bills remain active: SB 1246 (addressing, among other topics, emergency response procedures and override systems) and SB 1315 (addressing insurance coverage). New Jersey, Illinois, and the District of Columbia are also actively considering bills that would authorize AV operations.
Regulations
On April 28, 2026, the California Department of Motor Vehicles (DMV) released final regulations for the testing and deployment of AVs in California. The final regulations follow a year-long formal rulemaking process that included a public hearing and multiple rounds of proposed regulations. The regulations significantly alter the DMV's long-standing framework for AV operations in California, including by expressly permitting heavy-duty AVs to operate in California after years of regulatory prohibition. Other notable aspects of the regulations include establishing mileage-based thresholds for obtaining certain permits, removing disengagement reporting while creating new data reporting requirements, and requiring manufacturers to submit a comprehensive description of a "safety case" (as defined by the regulations) to obtain a permit.
With a few exceptions, the regulations went into immediate effect. The data reporting requirements during testing have a 120-day delay and will go into effect on August 26, 2026, while deployment reports will be due for the first full calendar quarter after the effective date of the regulations. Additionally, certain regulations that implement AB 1777 will go into effect on July 1, 2026, consistent with the statute's effective date.
On June 8, 2026, the California Assembly Transportation Committee held an informational hearing on the new DMV regulations. The hearing featured presentations from the DMV, industry participants, and other stakeholders on various aspects of the regulations.
The authors would like to thank Tess Brennan and Nicole McCormick for contributing to this newsletter.