Congress Ready to Pass Federal Autonomous Vehicle Regulations

For years the main obstacle to Tesla’s Cybercab has not been the underlying technology but the regulatory framework governing autonomous vehicles. That barrier has begun to break down.

In a decisive hearing before the House Energy and Commerce Subcommittee, lawmakers examined the SELF DRIVE Act of 2026 and sent a clear message: the United States is moving toward legalizing steering-wheel-free autonomy.

Although the meeting was a legislative hearing rather than a final floor vote, its result functions as a soft vote of confidence. Led by bipartisan representatives Bob Latta (R-OH) and Debbie Dingell (D-MI), the committee presented a unified position that could allow Tesla to deploy the Cybercab at scale as early as next year.

The Magic Number: 90,000

The most consequential element discussed was the exemption framework. Under current federal law, manufacturers are limited to deploying 2,500 vehicles per year that do not meet traditional Federal Motor Vehicle Safety Standards (FMVSS), such as steering-wheel- or pedal-less designs. For a mass-produced vehicle like the Cybercab, that cap would prevent timely volume production.

The SELF DRIVE Act discussion draft proposes raising this cap substantially, with the number discussed at the hearing being 90,000 units annually per manufacturer, and scaling up to 100,000 in later years.

U.S. House Committee hearing today:

"The caps on the number of (autonomous) vehicles and the length of those exemptions, make it almost an unusable program for the industry right now, and we think it's a critical one for innovative new safety technologies."

🔥🔥 pic.twitter.com/hmQUWepGHx

— Sawyer Merritt (@SawyerMerritt) January 13, 2026

Federal Preemption

One major victory highlighted at the hearing was the committee’s endorsement of Federal Preemption. That clause would prevent states or cities from banning vehicles that comply with federal safety standards.

Federal preemption directly counters efforts by restrictive state and local bodies — notably the California DMV and the New York City Council — that have tried to impose a patchwork of local bans and permitting rules.

Beating China

What shifted to bring Democrats and Republicans together on this? The recurring answer at the hearing was competition from China.

The debate moved from a Safety-versus-Innovation framing to a U.S.-versus-China framing. Lawmakers voiced concern that delaying autonomous vehicle legislation risks ceding the industry’s future to Chinese state-backed competitors that are already rolling out robotaxis aggressively.

U.S. House Committee hearing today: "Why is a federal autonomous vehicle framework essential for the U.S. to win the AI race with China?"

"It provides the certainty to innovators, manufacturers and the entire ecosystem, including those who invest in the technology, so they can… pic.twitter.com/awrlznMRDa

— Sawyer Merritt (@SawyerMerritt) January 13, 2026

“We cannot let America fall behind,” became the hearing’s unofficial mantra. Framing the bill as critical to national economic and technological security helped reposition the SELF DRIVE Act as must-pass legislation.

What’s Next?

Following the hearing, the bill will enter a markup session to finalize language, followed by a floor vote expected later this year. Given the bipartisan support shown and the urgency tied to the China competition, the path to passage appears clearer than before.

For Tesla, the legislative barrier is lowering, signaling an opportunity to accelerate preparations for Cybercab production and wider deployment of true autonomy.