To compete with Chinese automakers, the Trump administration is easing regulations to assist American automakers, such as Elon Musk's Tesla, in creating self-driving vehicles.
The Transportation Department said that exemptions from some federal safety regulations will be granted to U.S. companies working on self-driving car development for testing purposes.
The government also announced that it will replace a patchwork of state regulations with a single set of national guidelines for the technology and expedite crash reporting procedures for self-driving software, which Musk has criticized as being burdensome.
The decision was made the day after Musk assured Tesla investors during a conference call that the electric car manufacturer will start deploying self-driving Tesla taxis in Austin, Texas, in June.
It's unclear how Tesla in particular will be impacted by the National Traffic Safety Administration's exemptions.
The firm has staked its future on fully automating its vehicles, but it is now up against fierce competition, particularly from Chinese automaker BYD.
Musk has criticized the proposed revision to the accident reporting requirement as being unjust and onerous.
Since Tesla is the largest supplier of partially autonomous cars in the United States, it has reported a large number of overall crashes under the rule.
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Watchdogs for traffic safety had been concerned that the Trump administration might do away with the reporting requirement. According to the transportation statement released on Thursday, the necessity to report collisions will still be in place even though reporting would be relaxed to "remove unnecessary and duplicative" procedures.