Transportation Secretary Sean Duffy took to social media over the weekend to announce a significant shift in how the federal government funds university research programs. The days of supporting what he called "Green New Scam" or "woke DEI" programs are "LONG GONE," according to his Saturday post on X.

Major Funding Redirect

In their place, the Trump administration is channeling $33 million into university programs focused on automated vehicles and artificial intelligence. "We're investing $33 MILLION in universities across the country to look into automated vehicles, artificial intelligence," Duffy wrote, promising the funding would "UNLEASH American innovation!"

This announcement follows the Department of Transportation's earlier decision to cancel more than $54 million in funding to universities that prioritized diversity, equity, and inclusion programs. Schools affected by the cuts include the University of California, Davis, City College of New York, University of Southern California, and New York University, among others.

Air Taxis and Space Ambitions

The autonomous vehicle funding fits into Duffy's broader vision for transforming American transportation. He recently announced the nation's first-ever national strategy for advanced air mobility, framing it as essential for the U.S. to maintain its aviation leadership over China.

Duffy has been bullish on air taxis, saying they will "100%" become reality under the Trump administration. He even predicted they'll revolutionize package delivery for companies like DoorDash Inc. (DASH).

Meanwhile, President Trump signed a new Executive Order outlining America's space ambitions, targeting a return to the lunar surface by 2028. That timeline could benefit Elon Musk's SpaceX and its involvement in the Artemis Mission program.

The Autonomous Vehicle Race Heats Up

Speaking of Musk, Tesla Inc. (TSLA) has reportedly registered over 1,500 vehicles for its ride-hailing fleet in California, though the fleet hasn't received approval for driverless operations yet. That puts it slightly behind Alphabet Inc. (GOOGL) (GOOG)-backed Waymo, which operates more than 1,955 vehicles in its autonomous fleet.

Tesla has been pushing ahead with testing regardless. Musk confirmed the company is conducting driverless Robotaxi trials in Austin, where a Model Y was recently spotted navigating city streets with no one inside. A Cybercab prototype has also been seen testing in the wild.

The $33 million investment suggests the administration sees autonomous vehicles as a key technological battleground worth federal support, even as it redirects funding away from other university programs. Whether this strategy accelerates American innovation in self-driving technology remains to be seen, but the money is flowing and the testing is underway.