What Trump win might mean for Indiana transportation

On July 4, the One Big Beautiful Bill Act received the signature of the President, codifying its controversial provisions into law.

While most discussion and information about the bill, spearheaded by President Donald Trump (R), is playing out in a national context, there’s plenty of Hoosier-specific impact. This is true in many obvious sectors (education, healthcare, taxes, energy, etc.), but that is also the case for statewide transportation.

Indiana’s congressional delegation played a key role in the at-times narrow passage of the bill and its wide-reaching implications for infrastructure and transportation. Majority lawmakers, including U.S. Reps. Rudy Yakym (R), Marlin Stutzman (R), and Jim Baird (R) heartily endorsed the BBB, applauding its ability to boost rural investment and cut red tape across sectors such as agriculture, manufacturing, and freight.

The highly polarizing bill saw U.S. Rep. André Carson (D), a member of the House Committee on Transportation and Infrastructure, standing starkly opposed, releasing an official statement panning the provisions: “To all who voted for this cruel bill: you are hurting your own constituents. We won’t forget.”

Thinking about our tolling overview in our last June issue, specifically interstate connectivity to smaller, rural communities, these two changes coinciding could be a recipe for intense discourse next session (or sooner).

Supporters emphasized that the bill could bring significant investment to rural areas and modernize air traffic systems; both Rep. Yakym and U.S. Secretary of Transportation Sean Duffy placed a lot of emphasis on that last point.

Aerial Upgrades

A Secretary Duffy op-ed, written for Fox News, frames the modernization of America’s aging air traffic control system as essential to both national competitiveness and public safety.

He credits the One Big Beautiful Bill Act for initiating what he described as a long-overdue overhaul, bolstered by a $12.5 billion initial investment. This funding, Secretary Duffy argues, serves as the foundation for replacing decades-old technology still in use across the nation’s airspace infrastructure, such as rotary phones, copper wiring, and outdated radar systems.

Drawing on his recent experience at the Paris Air Show, Secretary Duffy warned that the United States risks falling behind nations like France, which recently upgraded its own systems and reported significant gains in efficiency. He emphasized that America’s outdated control network not only contributes to frequent delays and technical glitches but is also incompatible with the future of aviation, which includes commercial drones, air taxis, and even supersonic travel.

Secretary Duffy highlights growing industry consensus on the need for reform, noting that major U.S. airlines and over 50 aviation organizations have endorsed the plan through the Modern Skies Coalition. These groups argue that upgrading the system is vital to ensuring air travel remains the safest and most efficient form of transportation in the U.S.

While emphasizing that flying is still safe, Duffy framed modernization as a race against time. He urged Congress to move quickly, warning that every day without action further delays critical improvements. Without passage of the bill, he stated, the U.S. Department of Transportation would be left without the funds necessary to hypothetically begin construction on the new system, stalling America’s ability to lead in next-generation air travel.

You should also not lose sight of the fact that a chunk of the FAA modernization effort began under the tenure of a Hoosier, former secretary of transportation Pete Buttigieg . . . and the next phase of the work will likely occur under the oversight of Carmel resident Bryan Bedford, who stepped down as president of Republic Airways to accept a presidential nomination to serve as FAA administrator. The Hoosier’s nomination was approved by the full Senate by a 53-43 vote on Wednesday afternoon.

Rep. Yakym made a point to concur with Secretary Duffy’s assessment of the air traffic control system and need for an overhaul, releasing a statement shortly after the passage of the bill: “Today is a major victory for our country … from … modernizing our air traffic control systems … and boosting Made in America manufacturing, this bill puts America First.”

His celebration is likely personal as well as for his caucus: In 2023, Rep. Yakym led a bipartisan group of almost 140 House members in pushing for legislation concerning the Federal Aviation Administration to address the shortage of air traffic controllers.

Rep. Yakym isn’t the only legislator in the Crossroads of America who vocally agrees with Duffy on this issue. For more information on air traffic control in Indiana and Hoosier legislators’ opinions, check out our June 13 issue.

But as for which Indiana airports stand to gain from the BBB the most: insofar as Indianapolis International Airport, Axios reporters Justin L. Mack (locally) and Alex Fitzpatrick (nationally) find that IND “bucks the trend” of high vacancy rates for air traffic controllers, instead boasting one of the lowest rates in the U.S., just 4.4%, while the average rate of unfilled positions in the country is close to one in four (24%).

However, it’s not all CAVOK (pilot-speak for Ceiling And Visibility OK) for Indiana, though, as airports in Terre Haute (HUF), Evansville (EVV), South Bend (SBN), and Fort Wayne (FWA) exhibit some of the highest amounts of air traffic controller vacancies; HUF, for example, finds more than one-half (51.7%) of its positions unfilled.

RVs and Powerful Backers

Speaking of Rep. Yakym, he’s been one of the most vocal legislators speaking on the BBB’s impact not just in regard to air traffic control (he formerly was the top Republican on the Committee on Transportation and Infrastructure Subcommittee on Aviation), but other transportation sectors in Indiana, too.

During a recent visit to Goshen, U.S. Secretary of Labor Lori Chavez-DeRemer joined Rep. Yakym for a tour of Brinkley RV and a roundtable discussion focused on workforce development and the future of American manufacturing in the context of the “One Big Beautiful Bill.”

Secretary Chavez-DeRemer explained that the legislation provides significant support for manufacturers like Brinkley RV. The bill includes expanded tax incentives for domestic production, such as 100% expensing for new and upgraded manufacturing facilities, and permanent relief for small businesses. If those measures function as intended, they should encourage investment in U.S.-based operations and reduce reliance on foreign supply chains.

Brinkley RV, a growing Hoosier manufacturing employer, showcased its operations during the visit. Brinkley co-owner Micah Staley noted that the bill’s provisions, particularly those related to equipment expensing and workforce training, could help accelerate expansion and job creation both at Brinkley and across Indiana (Elkhart County comes to mind as a potential major beneficiary).

The roundtable participants also explained how the bill’s tax reforms, including deductions for overtime and tip income, are expected to benefit working families and support labor participation. Rep. Yakym and Secretary Chavez-DeRemer both pointed to the legislation as a catalyst for long-term economic growth for Hoosiers.

EV Tax Credit

While North Central Indiana perhaps stands to gain from the “Big Beautiful Bill” due to its RV industry, the legislation will also significantly impact Indiana’s electric vehicle industry, particularly smaller manufacturers such as Optimal EV in Elkhart. The company, which employs 35 workers building electric commercial vehicles, is concerned about a provision that would eliminate most federal EV tax credits after 2025.

The BBB will indeed deliver a major shift for the electric vehicle industry by eliminating federal tax incentives that had helped make EVs more affordable for American consumers. Until now, buyers could receive up to $7,500 in tax credits for new electric vehicles and up to $4,000 for used ones, key tools that helped close the cost gap between EVs and traditional gas-powered cars. With the bill’s passage, those incentives are set to expire on September 30 – which is earlier than many projections estimated.

The removal of these federal credits is expected to make EV purchases more financially challenging, especially for lower- and middle-income households. According to industry data, new EVs remain, on average, $9,000 more expensive than their gas-powered counterparts, with used EVs averaging $2,000 more.

Optimal EV Executive Vice President Jeff Hiatt believes the loss of the 45W tax credit, worth up to $40,000 per vehicle, would make it harder for customers to afford their products and could slow the company’s growth. He warns that without these incentives, incoming orders may decline, reminiscent of what happened earlier this year when Environmental Protection Agency funding was temporarily paused. Meanwhile, supporters of the bill argue it’s a necessary step to reduce government spending and revise tax policy.

The new law also ends subsidies for commercial EV charging stations.

The toll on EVs could have been worse, however. A provision that would have required states to collect a fee of $250 for electric vehicles and $100 for hybrid vehicles (adjusted annually for inflation) was stripped from the bill before it headed back to the House.