The U.S. House of Representatives passed bipartisan legislation on Tuesday that would re-authorize the Diesel Emissions Reduction Act (DERA) program through fiscal year 2029 at $100 million annually.
The program provides grants and rebates to help local governments, small businesses, schools, and fleet operators replace or upgrade older diesel-powered trucks, buses, construction equipment, and other heavy-duty engines.
Older diesel engines produce a share of the pollution, but are costly to replace. For every federal dollar invested, DERA returned up to $30 in public-health benefits.
“The trucking industry’s tremendous success at reducing its environmental impact is rooted in innovation, investment, and collaboration,” Henry Hanscom, American Trucking Associations chief advocacy and public affairs officer, said. DERA “has helped accelerate the deployment of cleaner, more efficient trucks while supporting the movement of America’s freight. By passing this bipartisan legislation, the House has taken an important step toward ensuring carriers can continue modernizing their fleets, which will deliver fuel savings and further emissions reductions.”
Since 2008, DERA has helped upgrade more than 76,900 vehicles and engines nationwide.
U.S. Rep. Doris Matsui (D-CA) introduced the Diesel Emissions Reduction Act of 2025. It was co-sponsored by U.S. Reps. Ken Calvert (R-CA), Chellie Pingree (D-ME) and Nick Langworthy (R-NY).