The federal electric vehicle mandate is dead. And not a moment too soon.

As of September 30, most major automakers are no longer eligible for the $7,500 electric vehicle tax credit. For years, this subsidy masked the true cost of electric vehicles and propped up demand for cars that many Americans never wanted in the first place.

Now, thanks to President Trump’s leadership and the reforms included in the One Big Beautiful Bill Act, the electric vehicle market is finally being forced to stand on its own two wheels, and it’s wobbling.

There was never a single electric vehicle mandate bill. There didn’t have to be. The federal government forced the shift to electric vehicles through a combination of regulatory punishment and fiscal manipulation. The most destructive of these tools was the ratcheting up of Corporate Average Fuel Economy or CAFE standards, which imposed steep penalties on automakers whose fleets didn’t meet arbitrary emissions targets.

Those penalties didn’t just hit companies — they hit drivers, in the form of more expensive gas-powered cars. Even when consumers made their preferences clear, choosing trucks, SUVs, and sedans with internal combustion engines, automakers were forced to cross-subsidize electric vehicles to avoid regulatory fines. Some passed on the regulatory penalty directly to car buyers. Others quietly raised sticker prices across the board. Either way, American drivers paid the price.

Now, those days are over. The One Big Beautiful Bill Act zeroed out CAFE penalties, ending a decades-long policy of punishing gas-powered vehicles through the backdoor. That alone is a massive win for American drivers and manufacturers. But it gets better.

The electric vehicle tax credit — the $7,500 golden ticket that served as the industry’s lifeline — is being phased out for most automakers. Under rules finalized earlier this year by the Treasury Department, only electric vehicles that meet stringent sourcing and content requirements are eligible for the credit anymore. That means most of the market loses access to the subsidy. Some automakers are pushing for compliance, but the net effect is clear: the federal government is no longer artificially inflating demand for electric vehicles.

This marks a ceremonial and substantive end to the mandate. After years of top-down mandates, Environmental and Social Governance pressure campaigns, and regulatory warfare, the free market is back in the driver’s seat. The American auto industry, once a global symbol of innovation and freedom, can finally begin to heal from the wounds inflicted by climate central planners and corporate greenwashing.

That healing is badly needed. electric vehicle sales are slowing, inventories are piling up, and resale values are crashing. Ford, GM, and other legacy manufacturers have already begun scaling back or canceling electric vehicle investments, quietly admitting what many of us have known for years: the business case for mass electric vehicle adoption doesn’t add up. When government handouts disappear, so does the illusion of demand.

None of this should be surprising. Americans never asked for this shift. They were told it was inevitable. They were told the future was battery-powered, regardless of whether the charging infrastructure existed, the minerals could be sourced responsibly, or the grid could handle the load. All valid concerns were dismissed as “anti-science” or worse. But the real science, the economics, has now spoken.

Electric vehicles may have a place in the marketplace, but that place must be earned, not mandated. If electric vehicles are truly better for consumers, they shouldn’t require subsidies, price controls, or federal guilt trips. Let the best vehicle win.

This moment is also a victory against the broader climate industrial complex. For too long, Washington picked winners and losers in the name of “decarbonization.” In reality, it empowered China, punished U.S. industry, and forced working-class Americans to bankroll someone else’s idea of virtue. By dismantling the electric vehicle mandate, the Trump administration has taken a bold step toward restoring accountability and common sense in energy and environmental policy.

There is still more to be done. States must unwind their own mandates and fleet purchase quotas. Congress should eliminate the remaining carve-outs and handouts buried in the tax code. And automakers must learn from this painful episode and stop chasing the approval of ESG activists and unelected bureaucrats.

But for now, let’s celebrate what’s been accomplished. The electric vehicle mandate is dead. The market is healing. And once again, Americans are free to drive what they want.

The Honorable Jason Isaac is the CEO of the American Energy Institute and previously served four terms in the Texas House of Representatives.