By David Shepardson
WASHINGTON (Reuters) -U.S. President-elect Donald Trump said on Monday that he is nominating former Wisconsin Representative and Fox Business News host Sean Duffy to be transportation secretary.
If confirmed, Duffy will oversee aviation, automotive, rail, transit and other transportation policies at the department with about a $110 billion budget as well as significant funding that remains under the Biden administration's 2021 $1 trillion infrastructure law and EV charging stations.
"I’m eager to help you usher in a new golden age of transportation," Duffy wrote on social media.
Trump has vowed to reverse the Biden administration's vehicle emissions rules. He has said he plans to begin the process of undoing the Biden administration's stringent emissions regulations finalized earlier this year as soon as he takes office. The rules cut tailpipe emissions limits by 50% from 2026 levels by 2032 and prod automakers to build more EVs.
Duffy will face a number of major transportation issues.
U.S. traffic deaths have fallen this year but still remain sharply above pre-COVID levels. The fatality rate remains higher this year than in any pre-pandemic year since 2008. He will face pressure to ease rules for self-driving cars sought by Tesla (NASDAQ:TSLA) and other automakers.
Trump said Duffy will prioritize "Excellence, Competence, Competitiveness and Beauty when rebuilding America’s highways, tunnels, bridges and airports. He will ensure our ports and dams serve our Economy without compromising our National Security."
Duffy will oversee the continuing enhanced oversight of Boeing (NYSE:BA). The Federal Aviation Administration, which is part of USDOT, capped production at 38 737 MAX planes per month in January after a door panel missing four key bolts flew off an Alaska Airlines 737 MAX 9 in midair that month, exposing serious safety issues at Boeing. He will also decide whether to continue the Biden administration's aviation passenger rights push and whether to approve more airline joint ventures.
Duffy will also be in charge of oversight of companies run by Elon Musk, who has been closely involved in Trump's transition.
USDOT is investigating Tesla Autopilot, while the FAA has proposed to fine SpaceX for violating space license rules. Musk has called for the resignation of FAA Administrator Mike Whitaker.
A persistent shortage of controllers has delayed flights and, at many facilities, while a series of near miss incidents involving passenger jets have raised safety concerns.
Congress also has been considering significant rail safety reforms in the aftermath of the February 2023 derailment of a Norfolk Southern (NYSE:NSC) train in East Palestine, Ohio. Duffy will also be in charge of overseeing billions of dollars in funding to high-speed rail and Amtrak projects.
A former Uber (NYSE:UBER) executive, Emil Michael, who was seriously in contention for the job congratulated Duffy and said "it was the honor of a lifetime to even be considered."