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This Week in AV News: Week of January 19

By Eric Tanenblatt, Peter Stockburger, and Walker Boothe
January 20, 2026
  • Autonomous Vehicles
  • Driverless Commute
  • General
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Congress Advances Toward a Federal Framework for Autonomous Vehicles

Lawmakers appear ready to move forward on bipartisan federal legislation that would establish a national regulatory framework for autonomous vehicles and significantly expand deployment authority. The proposal would raise the annual cap on exempt autonomous vehicles without traditional controls, allowing manufacturers to scale fleets well beyond today’s pilot limits. Supporters maintain that a uniform federal standard would replace the current patchwork of state rules, providing companies more certainty while accelerating innovation. The legislation is also framed as a competitive measure, aimed at ensuring the United States keeps pace with global rivals investing heavily in automated mobility. If enacted, the bill could mark the most consequential federal action on autonomous vehicles in years.
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Robo-bus Demonstration in Washington Highlights Mixed-Traffic Challenges

A federally sponsored autonomous bus demonstration in Washington, DC drew attention after a low-speed collision with a human-driven vehicle during the public event. No serious injuries were reported, and damage to both vehicles was minor, but the incident quickly became part of the broader debate over readiness and safety. A human safety operator was on board the autonomous bus, consistent with pilot program requirements. Officials emphasized that mixed-traffic environments remain one of the hardest challenges for automated systems, especially in dense urban corridors. Even routine incidents, supporters note, can shape public perception when the technology is still unfamiliar.
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States Diverge as New York Expands Pilots and Texas Races Ahead

With comprehensive federal rules still in flux, states are continuing to chart their own paths on autonomous vehicle deployment. New York is moving to broaden testing and pilot programs, signaling a cautious but deliberate expansion of automated driving on public roads. Texas, by contrast, has already positioned itself as one of the most permissive environments for autonomous vehicles, attracting significant industry activity and real-world deployments. The contrast underscores how regulatory climate can influence where companies choose to invest and operate. Until federal standards are finalized, this state-by-state divergence is likely to persist.
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Popular Electric Vehicle Company Shifts Advanced Driving Software to Subscription-Only

A popular electric vehicle company announced it will no longer sell its advanced driver-assistance package as a one-time purchase, moving instead to a monthly subscription model beginning in mid-February. The change replaces a high upfront cost with recurring payments, a move analysts say could broaden adoption while generating steadier revenue. Despite branding that suggests full autonomy, the system remains a supervised driving feature that requires constant human attention. The shift comes amid ongoing regulatory and legal scrutiny around marketing claims and real-world performance. Strategically, the decision signals a long-term bet on software services as a core revenue stream.
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San Diego Transit Agency Pushes Back on Robotaxi Expansion

The San Diego Metropolitan Transit System formally opposed plans by a popular robotaxi company to expand driverless ride-hailing operations in the region. Transit officials cited concerns about safety oversight, workforce impacts, and the lack of local control over deployment decisions. While the resolution does not directly block operations, it reflects growing municipal unease as autonomous services scale beyond pilot phases. Advocates for public transit argue that automation policy should account for labor and community impacts, not just technology readiness. The episode highlights the political headwinds autonomous operators may face even in tech-friendly states.
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CES 2026 Shows Momentum — and Limits — in Autonomous Vehicle Development

Autonomous vehicle technology was a major theme at CES 2026, with companies showcasing advances in sensors, artificial intelligence, and vehicle platforms designed for driverless operation. Demonstrations emphasized incremental progress, partnerships, and real-world deployment strategies, rather than bold promises of overnight transformation. At the same time, panel discussions highlighted persistent challenges, including cost, regulatory uncertainty, and the difficulty of handling rare edge cases. The overall message from the show was one of steady evolution rather than sudden breakthroughs. Autonomy remains a long-term project, shaped as much by policy and public trust, as by technical capability.
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Eric Tanenblatt

About Eric Tanenblatt

Eric Tanenblatt is the Global Chair of Public Policy and Regulation of Dentons, the world's largest law firm. He also leads the firm's US Public Policy Practice, leveraging his three decades of experience at the very highest levels of the federal and state governments.

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Peter Stockburger

About Peter Stockburger

Peter Stockburger is the office managing partner for the Firm’s San Diego office, a member of the Firm’s Venture Technology and Emerging Growth Companies group, and co-lead of the Firm’s Autonomous Vehicle practice. With a focus on data privacy and security, Peter works with clients of all sizes and maturity to build and shore up their privacy and security programs, deploy technology, enhance compliance and stakeholder confidence, take new products to market, work through data governance and retention challenges, navigate workplace disputes, and harness emerging technologies such as artificial intelligence.

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Walker Boothe

About Walker Boothe

Walker Boothe is an associate managing director in Dentons’ Public Policy and Regulation practice.

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