Auto industry to reportedly benefit from end of government shutdown
Now that the federal government shutdown has ended after over 40 days, federal employees are back to work, and CBT News reports the auto industry will benefit.
“For automotive manufacturers, suppliers, and dealerships, the reopening means critical pathways that had stalled during the shutdown are now restarting,” the article states. “Agencies such as the Environmental Protection Agency (EPA), responsible for emissions certifications, and the National Highway Traffic Safety Administration (NHTSA), which oversees safety compliance and recalls, had experienced considerable staffing reductions or partial closures. The EPA retained just 1,734 of 15,166 employees under its shutdown contingency plan, raising concerns that model year 2026 and 2027 vehicle certifications could be delayed.”
The Federal News Network reports that at least 670,000 federal employees were furloughed and 730,000 have been working without pay during the shutdown, and they’ll receive back pay under a plan passed by the House on Nov. 12.
“The deal reverses layoffs for about 4,000 federal employees and prevents further layoffs through the end of January,” the article states. “The IRS is in the process of rescinding layoff notices sent mostly to its human resources and IT staff, according to two agency employees who spoke to Federal News Network.”
With full government operations reinstated, CBT News says:
-
- “Dealers can anticipate fewer bottlenecks in bringing new‑model inventory to lots, as agency validation processes resume.
- “OEMs will be watching to see how quickly backlog clearance occurs within regulatory agencies and whether EV incentive guidance picks up pace.
- “Agencies such as the FTC and the Occupational Safety and Health Administration remain operational during the shutdown, despite reduced oversight.”
The Senate passed the spending plan on Nov. 10, including a continuing resolution that will keep many agencies funded at current spending levels until Jan. 30, 2026.
Images
Featured image credit: halbergman/iStock