According to an article posted on Heavy Duty Trucking's website on July 5, a portion of Volkswagen’s $15.3 billion settlement with the Federal Trade Commission will be used to fund incentives to replace older trucks with newer, cleaner units. $2.7 billion of the settlement is earmarked for an environmental trust, and it is assumed subsidized loans and grants for heavy trucks will come out of this trust.

It is not currently clear whether this new funding will replace the existing Diesel Emissions Reduction Act, but seeing as the DERA is due to expire this year, that could be the case.

We expect new truck pricing to rise notably in upcoming years as OEM’s introduce new technologies to meet 2027 emissions standards. Any subsidies that mitigate these cost increases would help to ensure these new trucks make it into the nation’s fleet.