President Biden's administration is reportedly scaling back stringent new Environmental Protection Agency (EPA) regulations that would have mandated US automakers to focus on electric vehicles (EVs) as their primary business by 2032. The New York Times disclosed that industry stakeholders successfully convinced the administration to grant them additional time to reduce EV costs and expand the nationwide charging infrastructure further.

Labor leaders advocated for an extension to allow union membership for employees in new US EV plants. The support from labor unions is considered vital for Biden's potential re-election bid as he contends with pressing environmental challenges and criticisms from former President Donald Trump, who is also eyeing a return to office.

Initial EPA guidelines called for EVs to account for 67 percent of new light-duty vehicle sales and 46 percent of new medium-duty sales by 2032, a significant increase from the 7.6 percent reported last year. However, the sales of EVs have decelerated due to various factors, including the auto industry's push for large electric trucks and SUVs that the supply chain currently cannot affordably accommodate.