Trump nominee says Boeing needs ‘tough love,’ EVs should pay for road use

WASHINGTON (Reuters) -President-elect Donald Trump’s nominee to head the U.S. Transportation Department said Boeing (NYSE:) needs “tough love” to get back on track after a 2024 mid-air emergency and that electric vehicles should pay to use roads.

“We have to make sure they are implementing their safety plan. We have to push the (Federal Aviation Administration) to make sure they’re implementing their safety plan,” former House lawmaker Sean Duffy told the Senate Committee at his confirmation hearing.

Duffy said he would work “with Congress and the FAA to restore global confidence in Boeing and to ensure our skies are safe.”

“Boeing is a national security issue. Boeing is the largest exporter of American product – incredibly important. In one of my meetings someone said though they need tough love, which is what they do need,” Duffy said.

The FAA is maintaining tougher oversight of Boeing indefinitely, a year after a door panel missing four bolts flew off a new Alaska Airlines Boeing 737 MAX 9 in mid-air. It has also barred Boeing from expanding production beyond 38 MAX planes per month.

FAA Administrator Mike Whitaker plans to step down on Jan. 20, while Deputy FAA Administrator Katie Thomson left the agency last week. Trump has not yet named a new nominee to head the department.

Most revenue for federally funded road repairs is collected through taxes on diesel and gasoline, which EVs do not pay. “They should pay for use of our roads. How to do that, I think, is a little more challenging,” said Duffy.

Some states charge fees for electric vehicles to cover road repair costs. Congress for the past three decades has opted not to hike taxes and instead used general tax revenue to address shortfalls in the federal highway trust fund.