What to watch for in Duffy hearing

Jan 13, 2025

With help from Chris Marquette, James Bikales and Oriana Pawlyk

Quick Fix

— The upcoming surface transportation bill, electric vehicle rules and more: Here’s what could be big issues during Sean Duffy’s confirmation hearing for DOT chief.

— Conservative lawyer Steven Bradbury, who previously served as DOT’s general counsel, is President-elect Donald Trump’s pick to be deputy secretary of the agency.

— Trump sided with dockworkers in their fight against automation — but it’s unclear if it marks a major shift in how he will handle labor policy.

IT’S MONDAY: You’re reading Morning Transportation, your Washington policy guide to everything that moves. We’re glad you’re here. Send tips, feedback and song lyrics to Sam at sogozalek@politico.com, Chris at cmarquette@politico.com and Oriana at opawlyk@politico.com and follow us at @SamOgozalek, @ChrisMarquette_ and @Oriana0214.

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Driving the Week

MT’S HEARING WATCH LIST: Sean Duffy, the DOT secretary pick, is slated to appear before the Senate Commerce Committee for his confirmation hearing Wednesday. It’s set for 10 a.m. in Russell Office Building 253 — and both Republicans and Democrats on the panel have expressed support for his nomination, hinting at an easy path forward for the previous House member and Fox Business personality.

— Your MT team has been chatting with lawmakers on the committee — and reviewing their social media posts — to learn more about Duffy’s potential priorities and what questions senators may ask him. Here are three key issues to look out for:

1. The next surface transportation bill: Sen. Shelley Moore Capito (R-W.Va.) said she thinks Duffy is supportive of “flexibility” for states to make their own decisions. Expect questions about formula funding vs. discretionary grant levels for the upcoming reauthorization legislation, as well as what types of infrastructure Duffy wants to prioritize.

2. Electric vehicle policies: As a common political punching bag for the GOP, the Biden administration’s focus on such cars will likely be brought up. In an X post, Sen. Cynthia Lummis (R-Wyo.) said she has no doubt that Duffy will “do right by Wyoming and the rest of the United States by eliminating radical EV mandates.”

3. Boeing: Duffy will almost certainly face questions over how he would handle the regulation of the nation’s airspace and oversight of Boeing, especially once FAA chief Mike Whitaker resigns on Jan. 20. Sen. Tammy Duckworth (D-Ill.) noted that she spoke with Duffy about making sure the 2024 FAA law is executed.

DEPUTY CHOICE NAMED: In a Truth Social post Saturday, President-elect Donald Trump announced his nominee for deputy DOT secretary: Steven Bradbury, a well-known conservative lawyer and veteran official at the agency. Bradbury, a distinguished fellow at the Heritage Foundation, was the department’s general counsel in Trump’s first administration. Chris has more about his background here.

Ports

READING THE TEA LEAVES: Trump is receiving praise in some quarters for saving the economy from a massive dockworker strike on the Eastern Seaboard and Gulf Coast, having sided with a powerful longshore union in its fight with employers over automation. (The parties reached a contract deal last week.) It’s a big win for the president-elect, but it’s unclear whether he can truly earn a spot in labor’s good graces, Holly Otterbein, Ry Rivard, Sam and Nick Niedzwiadek report. In many ways, the negotiations were unique, as they pitted American workers against an industry dominated by foreign shipping companies — a natural enemy for MAGA — and Trump has a decades-old relationship with the dockworker union’s fiery boss, Harold Daggett, who met with him at Mar-a-Lago last month.

NOT IN LOCKSTEP: In another twist, Trump and his chief cost-cutting adviser, Elon Musk, an outspoken union foe, weren’t on the same page over the ports dispute. The Tesla CEO has trolled Daggett on X for living a lavish lifestyle. “Does Elon Musk have influence? Certainly. Does he have power? No,” said Steve Bannon, a former top Trump aide.

— Asked if the longshore case suggests a change in how Trump will handle labor policy this term, Sen. Bernie Sanders (I-Vt.) told your MT host he hopes the president-elect’s administration “will work with unions” and support the PRO Act. “They support the PRO Act, that’s a big deal,” Sanders said. Trump’s transition team didn’t respond to a request for comment.

At the Agencies

ON THE WAY OUT: DOT announced Friday a massive amount in grants for projects across the country addressing everything from rail safety to public EV chargers — just days before Trump returns to the White House. The nearly $5 billion comes from the 2021 infrastructure law, one of President Joe Biden’s signature legislative accomplishments, which Republicans are eyeing as they assess ways to pay for tax cuts in forthcoming reconciliation legislation.

— The grants serve 560 projects across all 50 states, the District of Columbia and U.S. territories. The announcements include: $1.1 billion for rail grade crossing improvements; $635 million for deploying EV charging ports and hydrogen and natural gas fueling infrastructure; and $332 million for airport modernization efforts. Further details can be found here.

On the Hill

EARLY LIST: House Republicans are passing around a “menu” of over $5 trillion in cuts they could use to bankroll Trump’s top priorities this year, Ben Leonard, Meredith Lee Hill and Kelsey Tamborrino report. The document of potential spending offsets, obtained by POLITICO, includes targets like: discontinuing the “Green New Deal” provisions of the infrastructure law ($300 billion); ending the EV “mandate” ($112 billion); and repealing Inflation Reduction Act green energy grants ($56 billion).

AMTRAK LEGISLATION UP TO BAT: The House today is scheduled to consider two Amtrak transparency bills: H.R. 192 and H.R. 188 by Rep. David Rouzer (R-N.C.) and Rep. Troy Nehls (R-Texas), respectively. The former would mandate that the railroad publish bonuses it awards to executives, as well as explain how they were calculated, and the latter would make the company’s board of directors subject to open meeting requirements.

Electric Vehicles

LAST-MINUTE EV MOVE: The Biden administration proposed a rule Friday clarifying provisions in the EV tax credit that cover leased vehicles. But the action could soon be put on hold by the incoming Trump administration and is a top target for repeal by Republicans. The draft regulation — which is subject to a 60-day comment period that will extend into Trump’s second term — lays out how to calculate the value of the commercial clean vehicle tax credit based on the cost differential between an EV and an equivalent gas-powered car. Treasury has been operating the credit under temporary “safe harbor” provisions which applied in 2023 and last year.

Highways

INITIAL TALKS ON SURFACE REAUTHORIZATION: Rep. Rick Larsen (D-Wash.), ranking member of the House Transportation Committee, told Chris he’s had preliminary discussion with Chair Sam Graves (R-Mo.) about the next surface transportation bill.

— “My main point has always been, if you like unemployment at around 4 percent, and you want to continue to be there — or less — then we need to continue funding the infrastructure projects and the programs. We don't have to call it the bipartisan infrastructure law,” Larsen said. “But the coach turns into a pumpkin on Sept. 30, 2026, so we have to reauthorize it for the next five years after that. So again, if you like the jobs, then we need to get it done.” (He was specifically referring to T&I’s part of the upcoming bill, which includes roads, bridges, highways, transit and rail.)

Maritime

BUSY, BUSY, BUSY: Despite the possible International Longshoremen’s Association walkout being averted, the nation’s major container ports have already seen a surge in imports — and the trend is expected to continue due to Trump’s threatened tariffs, according to a Friday report from the National Retail Federation and Hackett Associates, a consulting and research firm focused on maritime issues. “The [contract] agreement came at the last minute,” and retailers were bringing in spring merchandise early “to ensure that they would be well-stocked to serve their customers in case of another disruption,” Jonathan Gold, the NRF’s vice president of supply chain and customs policy, said in a statement.

Trump Transition

WHAT INTERESTS SAY: Another group is weighing in on Duffy's nomination: the Association for Uncrewed Vehicle Systems International. In a letter to Commerce Chair Ted Cruz (R-Texas) and ranking member Maria Cantwell (D-Wash.), AUVSI’s president and CEO, Michael Robbins, says the group is backing Duffy.

Shifting Gears

— Michelle Schwartz has launched Takeoff Advisors LLC, an aviation-focused strategic consulting firm. She most recently was chief external affairs officer at the Los Angeles 2028 Olympic and Paralympic Games and is an FAA, Los Angeles World Airports and Senate (Frank Lautenberg and Chuck Schumer) alum.

The Autobahn

— “Passengers evacuate Delta flight on slides after aborted takeoff in snowy Atlanta.” CNN.

— “Self-driving-car executives excited for Trump (and Musk) to take the wheel.” Washington Post.

— “Salvage complete of tanker at center of oil spill scare after being hit by Houthi rebels in Red Sea.” AP.

— “Jeju Air black box data missing from crucial minutes before crash.” Reuters.

— “Tesla recalls about 239,000 vehicles over rear-view camera issue.” Reuters.

— “BYD steps up Europe expansion with new compact SUV.” Reuters.

— “Inside Elon Musk’s Plan for DOGE to Slash Government Costs.” New York Times.

— “Republicans Can Slow but Not Stop Electric Vehicles, Experts Say.” New York Times.

— “The Roller-Skating Economist You Can Thank for Congestion Pricing.” New York Times.

— “Why Airlines Are Optimistic About 2025.” New York Times.

— “Delta Flight Under Investigation After Emergency Injures Four.” Bloomberg.