Riding in cars without brake pedals or steering wheels may soon become common in cities like Las Vegas and San Francisco. On Thursday, July 31st, 2026, the U.S. Department of Transportation's National Highway Traffic Safety Administration (NHTSA) announced a two-year temporary exemption for autonomous robotaxi company Zoox, allowing commercial deployment of up to 2,500 vehicles annually.

Zoox, which received the first American autonomous vehicle demonstration exemption last August, currently operates free rides in Las Vegas and San Francisco and plans to expand to Austin, Texas, and Miami.

This move aligns with Transportation Secretary Sean Duffy's "transportation innovation agenda," aimed at unleashing innovation and enabling commercial deployment of autonomous vehicles (A.V.s) through deregulation and modernization of federal motor vehicle standards.

NHTSA is simplifying the application process for Part 555 exemptions, a regulatory carveout that permits car companies to test new technologies by deploying products in small batches, enabling more A.V. companies to demonstrate commercial readiness.

Additionally, NHTSA announced a three-year partnership with the technology trade association SAE Industry Technologies Consortia to gather data and accelerate the creation of a national safety standard for autonomous vehicles, replacing the current patchwork of state regulations. The agency will provide funding for the $5 million consortium of experts responsible for making recommendations.

Current federal motor vehicle standards often require features unnecessary for autonomous vehicles, such as rearview mirrors, foot pedals, manual gear shifts, steering wheels, and front-facing seats. NHTSA intends to update standards for controls and displays, vehicle lighting, mirrors and rearview displays, electronic stability control systems, sun visors, and warning labels.

The agency emphasized that new standards will be technology-neutral and will allow A.V. developers to self-certify that their vehicles meet all safety requirements. NHTSA Administrator Jonathan Morrison stated the agency is focused on removing barriers rather than adding new ones.

Sources