Lawmakers in Washington have voted to block California's landmark law to ban new gasoline-powered cars by 2035.
The Senate and House voted to nullify a waiver that allowed California to set stricter auto emissions standards than federal regulations.
This decision is seen as a victory for Republicans, energy firms, and carmakers, while Democrats and environmental groups view it as a setback for pollution and climate change efforts.
President Donald Trump is expected to sign the measure, potentially leading to a legal battle.
California Attorney General Rob Bonta said: "This federal government overreach is illogical, politically motivated and it comes at the expense of Californian's lives and livelihoods.”
Trump's opposition to California's plan, due to its potential influence over the US car industry, has been clear.
Other states, including New York and Massachusetts, planned to adopt similar rules, representing over a third of the US car market.
Electric vehicles, including hybrids, accounted for about 10% of new US car sales, compared to 30% in the UK last year.
Critics argued that California's standards, requiring 35% of new car sales to be electric by 2026, were unrealistic.
Carmakers expressed concerns over a credit scheme that could force them to buy credits from Tesla, hindering investment in their own electric car production.
"The concerns were about the mandate – not the technology," said carmaker lobby group president John Bozzella of the Alliance for Automotive Innovation.
California has long received EPA waivers to set stricter standards due to air quality issues.
Trump's first term saw attempts to strip these powers, leading to a legal battle that ended with President Joe Biden's 2020 election victory. Congress has typically avoided involvement in this issue.
The Government Accountability Office and Senate parliamentarian indicated Congress did not follow proper procedures to repeal the rule. Senate Democrats accused Republicans of using a "nuclear option" to block the waiver, suggesting similar tactics could be used against other agency rules.
The measure passed 51-44, largely along partisan lines.
