Vehicle Innovation Act of 2026

Summary#

This Act creates a consolidated vehicle technology program run by the Department of Energy. It directs the Secretary of Energy to support research, development, engineering, demonstration, and commercial application of advanced vehicle technologies and related manufacturing. The program covers many technology areas, including electrification, batteries and other energy storage, power electronics, hydrogen and natural gas vehicle technologies and infrastructure, engine and drivetrain efficiency, lightweight materials, aerodynamics and tires, sensing and connectivity, secondary uses and recycling of vehicle batteries, and heavy-duty and nonroad vehicle systems. The Act also requires coordination to avoid duplication, directs interagency and intergovernmental cooperation, and repeals several specified sections of the Energy Policy Act of 2005. The Secretary must report annually to Congress on technologies developed and program activities through 2031.

What it means for you#

If enacted, the Department of Energy would run new and expanded programs that fund research, demonstrations, and partnerships with industry, universities, national labs, and states. The programs would fund projects for passenger, commercial, transit, medium- and heavy-duty, and nonroad vehicles. The Department would publish guidelines and run pilot demonstrations for secondary uses of vehicle batteries, support demonstrations of integrated Class 8 truck and trailer systems, and develop testing procedures and metrics. The Act emphasizes that funded activities should be carried out in the United States and that projects should include a range of industry participants.

Expenses#

The Act authorizes the following appropriations to the Secretary for research, development, engineering, demonstration, and commercial application of vehicles and related technologies:

  • Fiscal year 2027: $313,567,000
  • Fiscal year 2028: $326,109,000
  • Fiscal year 2029: $339,154,000
  • Fiscal year 2030: $352,720,000
  • Fiscal year 2031: $366,829,000 No publicly available information on specific budget outlays, cost savings, or economic impacts beyond these authorized amounts.

Proponents' View#

The text of the Act lists its objectives, which describe its supporters' goals: to create a consistent authority for vehicle technology work at the Department of Energy; improve fuel efficiency and reduce emissions of vehicles made in the United States; support domestic research, development, demonstration, commercial application, and manufacturing of advanced vehicles, engines, and components; enable moving more goods and passengers with less energy and emissions; develop cost-effective technologies for wide use across passenger, commercial, government, and transit sectors; increase consumer choice of vehicle technologies and fuels; shorten technology development cycles; maintain a balanced and diverse Federal investment in vehicle technologies; and strengthen partnerships with state, private, and academic sectors.

Opponents' View#

No publicly available information.