It looks like the OBBB ended the CAFE standards which have been blamed for the increase in car sizes over time (e.g. https://www.thedrive.com/news/small-cars-are-getting-huge-ar...). Also personally although I would prefer that people purchase EVs rather than ICE cars, I think it’s best not to subsidize cars at all, since it only benefits those who can afford cars, and it’s better to encourage other forms of transit.
Small footprint EV should still be subsidized. You have 30 years of polluters, especially egregious. SUVs in the used market. The goal of subsidies is to shape long term outcomes where individuals must react to short term.
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