U.S. Senator Bernie Moreno's Auto Industry Legislative Push Raises Ethics Questions Amidst Family Business Ties
Key Insights
Senator Bernie Moreno, a former car dealer, has introduced several legislative proposals aimed at significantly reshaping the U.S. automotive industry, including tax incentives and regulatory changes.
His proposed bills seek to boost U.S.-made vehicles through tax write-offs, end electric vehicle subsidies, increase EV and hybrid vehicle fees, and roll back emissions and fuel economy standards.
Moreno's legislative focus has drawn scrutiny regarding potential conflicts of interest, given his past business and his son's ongoing Mercedes dealership project on land he owns.
Despite ethical concerns raised by watchdogs, Senate rules do not explicitly prohibit lawmakers from legislating in areas of their prior business expertise, leaving the issue for public consideration.
U.S. Senator Bernie Moreno, a Republican from Ohio and former luxury car dealership magnate, has initiated a legislative agenda heavily focused on the automotive industry since taking office in January, sparking discussions around potential conflicts of interest. Despite claims of divesting from his businesses to avoid such accusations, Moreno's son is currently developing a Mercedes dealership on land owned by the Senator, adding a layer of scrutiny to his legislative priorities.
Moreno's proposals aim to significantly alter the market dynamics for both traditional and electric vehicles. Among his key initiatives is the United States Automobile Consumer Assistance and Relief Act (USA CAR Act), which would permit a tax write-off for auto loan interest exclusively on new U.S.-made personal-use passenger vehicles. Concurrently, he seeks to terminate all electric vehicle (EV) tax subsidies by September 30, 2025, and substantially increase annual fees on EVs to $500 and hybrid vehicles to $250, up from current rates. Other provisions include levying a 50% tariff on tire imports, excluding those under USMCA agreements, to support domestic production, and eliminating Corporate Average Fuel Economy (CAFE) fines, alongside lowering the federal excise tax (FET) on trucks from 12% to 2%.
In February, Senator Moreno introduced The Transportation Freedom Act, a bill designed to repeal existing emissions regulations and provide tax incentives for car manufacturers. This legislation has garnered support from major industry players, including General Motors, Stellantis, Toyota, the National Automobile Dealers Association (NADA), the Alliance for Automotive Innovation, and American Trucking Associations. Moreno asserts that his legislative efforts are crucial for freeing the car business from what he describes as the “choke hold of government intervention,” aiming to reduce vehicle prices by slashing mandates like the EPA's 'tailpipe rule' and California's zero-emission vehicle mandate.
While Senate ethics rules do not explicitly forbid lawmakers from legislating in areas where they have prior business interests, they do prohibit using one's position to further personal or immediate family financial interests. Cynthia Brown, senior ethics counsel at Citizens for Responsibility and Ethics in Washington, notes that while such actions are not a direct violation, they can become a point of public and political contention. Moreno's press secretary, Reagan McCarthy, dismissed conflict of interest inquiries as