NEW YORK — Sean Duffy has been officially appointed as the new transportation secretary after receiving confirmation on Tuesday, a move that positions him in a vital role to assist President Donald Trump in deregulating the sector and addressing the country’s infrastructure needs.
The former congressman from Wisconsin has laid out his agenda, which includes improving the safety standards of Boeing aircraft, reducing regulatory burdens, and providing substantial support for American companies working on autonomous vehicles, all while maintaining a tough stance towards influential figures like Elon Musk, who is heavily involved in self-driving technology.
At 53, Duffy, a former reality television personality, received significant bipartisan backing, being approved by the Senate with a vote of 77 to 22. His new position at the Department of Transportation comes at a pivotal moment for the agency, which is responsible for overseeing over 55,000 employees and managing tens of billions in funding annually. The department regulates the country’s highways, rail systems, and air traffic, while also establishing safety protocols for various modes of transportation.
During his recent confirmation hearings, Duffy pledged to restore trust in Boeing, increase the number of air traffic controllers, eliminate diversity, equity, and inclusion initiatives within the DOT, and implement federal regulations for self-driving cars to avoid a fragmented regulatory landscape that critics argue hampers U.S. innovation.
Musk stands to gain significantly from changes in regulations, as stock values for his electric vehicle company, Tesla, have surged since Trump took office, fueled by anticipations of streamlined federal guidelines. Investors are hopeful that the investigations currently facing Tesla conducted by the DOT will be relaxed with Musk’s close ties to the Trump administration.
Nevertheless, Duffy assured senators during hearings that he would maintain an impartial approach. “I will allow the National Highway Traffic Safety Administration (NHTSA) to conduct its investigation,” he stated, emphasizing the necessity of thorough probes into vehicle manufacturers.
The hearings highlighted China’s competitive threat to U.S. advancements in autonomous vehicle technology, with Duffy mentioning how a major Chinese electric vehicle manufacturer, BYD, is successfully capturing market share from Tesla in both China and Europe.
“We cannot afford to fall behind countries that foster and enhance innovations with clear regulations rather than leaving it to fragmented rules across states,” Duffy remarked before the Senate Committee on Commerce, Science, and Transportation. “We are in direct competition with China.”
The DOT currently has multiple investigations underway examining the safety of Tesla vehicles, particularly regarding the company’s so-called Full Self-Driving feature, which necessitates human oversight. In October, the NHTSA initiated an inquiry into Tesla’s self-driving technology, scrutinizing 2.4 million vehicles due to reports of accidents occurring under low visibility, including a tragic incident resulting in a pedestrian’s death.
Musk, who has positioned himself as a close ally of Trump, has contributed around $250 million to the president’s campaign efforts.
Duffy’s initiatives at the DOT are expected to directly influence profits not only for Tesla but also for Musk’s aerospace firm, SpaceX, which holds a plethora of lucrative contracts with federal bodies. The Federal Aviation Administration under the DOT has previously fined SpaceX for safety violations, including a hefty penalty of $633,000 last year concerning alleged infractions during launches in Florida.
