Let's take a look at J.D. Vance's policy agenda
Former President Trump chose J.D. Vance as his vice presidential nominee, highlighting a young senator with unconventional economic views. If they win in November, Vance would influence policy and likely become a leading Republican figure for 2028. Vance has argued that liberalized global trade and immigration harmed U.S. workers, advocating for reversing these trends to boost wages, innovation and native-born male labor participation.
J.D. Vance becoming Trump’s running mate is reflecting a populist stance. Vance supported breaking up Google, higher tariffs and tougher bank regulations, aligning with Trump’s trade wars and antitrust actions against Silicon Valley.
Like most Republican officials, he supported increased oil and gas drilling, which could boost Trump’s appeal in Pennsylvania, a key fracking state. The vice presidential nominee also aligned with conservative efforts against affirmative action, campus protests and perceived elitism in education.
With that in mind, let’s take a closer look at the J.D. Vance policy agenda.
Vance on Renewable Energy
An author and former venture capitalist known for his skepticism of climate change and advocacy for rail safety, Vance was chosen over other contenders like Gov. Doug Burgum and Sens. Tim Scott and Marco Rubio. Trump made the announcement via social media as convention delegates were casting their votes.
In the Senate, Vance closely aligned with the Republican Party on energy and environmental issues. He dismissed concerns about climate change, stating in 2022 that even if a crisis existed, buying more Chinese-manufactured electric vehicles (EVs) wouldn’t solve it, claiming the crisis was manufactured to appease Democratic donors.
Earlier, he acknowledged a “climate problem” due to cleaner energy sources’ limited market share and placed significant blame on China for greenhouse gas emissions. During a 2023 hearing, Vance criticized the Biden administration’s adoption of International Civil Aviation Organization climate policies and opposed carbon offsets in aviation, questioning why American aviation faced penalties while China, emitting twice as much carbon, did not.
His Take on EVs
Vance last year proposed the Drive American Act, aiming to end the federal EV tax credit and promote U.S.-made gasoline and diesel vehicles.
The GOP VP nominee has long criticized electric vehicles, including Tesla (NASDAQ:TSLA), despite endorsements from Elon Musk and support from tech figures like Peter Thiel and Steve Case. In 2022, Vance admitted he finds Teslas fast but not his preference. He argued against EVs due to perceived charging and manufacturing hypocrisy, noting China’s dominance in battery supply chains and the environmental impact of charging vehicles on a largely fossil-fuel-dependent grid. Vance has branded the EV industry as a “scam.”
Vance criticized electric vehicles for their reliance on fossil fuels, opposing Biden’s EV tax incentives while proposing credits for U.S.-made gas and diesel vehicles. Elon Musk, who shares Vance’s stance against EV subsidies, supported him, emphasizing Tesla’s advantage if subsidies end. Tesla received significant subsidies, including a $465 million federal loan. Musk backed Vance through a pro-Trump super PAC despite Trump’s differing views on EVs.
J.D. Vance’s views on climate shifted post-2022 Senate campaign, backed by $340,000+ from oil and gas donors since 2019. He dismissed a climate crisis in a 2022 radio interview, opposing Chinese EV purchases and citing China’s grip on EV materials and the U.S. fossil fuel-heavy power grid.
The VP nominee’s stance overlooks that vehicle emissions are the primary U.S. greenhouse gas source accelerating global warming. The federal government and private sector are investing $250 billion in North America’s EV supply chain, boosted by laws like the Inflation Reduction Act and Bipartisan Infrastructure Deal. Ohio benefits from these laws with projects like a $3.5 billion lithium battery facility and a clean steel plant. Despite a brief decline in early 2024, U.S. EV sales are rising, with predictions suggesting they could reach 2.5 million by 2025, up from 1.1 million in 2023.
Regulated AI Usage
Senator J.D. Vance, a Republican from Ohio, opposed heavy regulation of AI and advocated for reining in Big Tech to support smaller companies. His stance on AI policy could influence a future Trump administration. Despite backing open-source AI, he broke with his party by supporting FTC Chair Lina Khan’s tough stance on Big Tech antitrust, while maintaining ties with influential backers of smaller AI startups.
During a recent privacy and AI committee hearing, Vance criticized Big Tech for hyping AI’s potential dangers to justify regulations that benefit established giants. He argued such rules hinder innovation and job creation.
While Trump hadn’t named an AI policy leader if re-elected, Vance’s influence on the industry is anticipated. Compared to Biden’s cautious approach, Vance likely supports less stringent AI regulations, advocating for increased U.S. investment to rival China. Balancing his calls for relaxed AI oversight with holding Big Tech accountable poses a challenge, experts noted.
Europe implemented laws banning high-risk AI uses like biometric data collection by law enforcement and mandated transparency from companies. In the U.S., numerous states are enacting or considering laws requiring AI security testing and consumer transparency.
Congress held forums with AI creators, academics and company leaders, yet federal legislation stalled. Vance engaged in policy forums led by Senate Majority Leader Chuck Schumer on AI’s impact on security, copyright, discrimination and labor. He previously worked for Peter Thiel and co-hosted a fundraiser with David Sacks.
In 2020, Vance founded Narya Capital, aiming to foster competition in tech. He criticized Meta (NASDAQ:META) and Apple (NASDAQ:AAPL)for monopolistic practices and advocated breaking up Google (NASDAQ:GOOG, NASDAQ:GOOGL), but hasn’t addressed powerful A.I. firms like OpenAI and Anthropic.
U.S Banking Agendas
On the Senate Banking Committee, Vance criticized major banks and collaborated with Sen. Elizabeth Warren on penalties for failed bank executives. He supported FTC Chair Lina Khan’s antitrust efforts, diverging from most GOP lawmakers critical of her actions. Travis Norton, formerly a Republican staffer now at Brownstein, noted Vance’s stance against unfettered free-market capitalism.
Vance co-sponsored bills targeting credit card swipe fees and discouraging banks from restricting services to certain industries. He partnered with Sen. Sheldon Whitehouse on legislation to eliminate tax-free mergers.
While aligning with Republicans on most financial regulations, he opposed Biden’s plan to increase capital requirements for large banks. Vance also cautioned corporations against promoting liberal social and environmental policies, highlighting potential repercussions during Senate hearings last year.
Pro-Crypto Plans
Trump’s evolving stance on Bitcoin (BTC-USD) has garnered increased campaign support and millions from the crypto industry. Conversely, Vance’s opinion of Trump shifted: Once critical during his VC tenure at Mithril Capital, he later supported Trump’s presidency. During Vance’s 2022 campaign, Trump remarked on Vance’s changed stance, noting his desire for support.
Vance’s VC background favored tech sectors like Bitcoin and crypto, bolstering his campaign that secured $10 million from Thiel and strong crypto industry support. He opposed tax reporting rules for crypto firms, criticizing regulators for neglecting their duties and introduced the Financial Regulatory Accountability Act with two senators in July 2023. He also proposed a bill in 2023 to safeguard crypto customers from banking restrictions.
The Ohio senator criticized the SEC for its aggressive actions against crypto, including freezing assets of DEBT Box based on alleged false statements. He, along with other senators, rebuked the SEC for prematurely announcing approval of spot-BTC ETFs in January 2024, impacting crypto markets. Vance also voiced concerns about SEC Chairman Gary Gensler’s regulatory approach, accusing him of politicizing securities regulation, which he believed was detrimental to blockchain and crypto industries.
In June, Vance circulated draft legislation proposing a friendlier regulatory framework for the U.S. crypto market, contrasting with a separate House effort. He, turning 40 on August 2nd, appears to be the first presidential candidate owning or having owned crypto assets, notably $100,000 to $250,000 in BTC on Coinbase (NASDAQ:COIN), as per his 2022 disclosures.
On the date of publication, Chris MacDonald did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Chris MacDonald’s love for investing led him to pursue an MBA in Finance and take on a number of management roles in corporate finance and venture capital over the past 15 years. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative, long-term investing perspective.