Volkswagen Settlement Funding: What Cities Should Know

Volkswagen Settlement Funding: What Cities Should Know

December 2016

Download the fact sheet (PDF)

In October 2016, the U.S. government granted final approval of a $14.7 billion settlement against Volkswagen (VW) for equipping more than 500,000 of its diesel vehicles to cheat U.S. vehicle emissions tests in violation of the Clean Air Act. Volkswagen will spend $10 billion on vehicle buybacks and $4.7 billion to mitigate the pollution from these cars and invest in green vehicle technology. This latter amount will be split between two investment programs that states, cities, and tribes can use to expand alternative vehicle projects and access to zero emission vehicles (ZEVs). Cities can play a key role, starting now, by identifying local emissions-cutting and zero-emission vehicle deployment projects that could benefit from increased investment and proposing ideas to states and Volkswagen about ways these funds can best be leveraged.