Attorney General Pamela Bondi and Transportation Secretary Sean P. Duffy have announced that the Justice Department, on behalf of the National Highway Traffic Safety Administration (NHTSA), has filed suit to stop California from imposing an illegal electric vehicle mandate through what are effectively state-specific mileage requirements for car manufacturers.
This case challenges the state's regulations as preempted under the Energy Policy and Conservation Act, which makes NHTSA the exclusive regulator of fuel economy in the United States. Federal law prohibits individual states from adopting regulations related to fuel economy.
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May 01, 2026 15:54 ET Central banks dominated the economics news flow this week with almost all major ones announcing their latest policy decisions and many boosted expectations for a rate hike in June. In other news, several countries released the preliminary data for first quarter economic growth. In the U.S., comments by Fed Chair Jerome Powell were also in focus as his term ends this month.