On this day in the year 1972, U.S. President Richard M. Nixon signed a bill that required every U.S. state to reduce the speed limit maximum to 55 m.p.h in their jurisdiction. The bill came about from the federal government needing to spend the federal highway money or risk the chance of losing it. The country was also going through an energy crisis in which there were potential risks for fuel shortages. Richard Nixon encourage a the American people that a reduction in the speed limit would reduce the amount of fuel needed to run motor vehicles.
The bill required that all states create a maximum speed limit of 55 m.p.h. or they would not receive funds from the federal government for their highways. Each state had 60 days to lower the speed limit before it would lose their money. The bill indicated that the speed limit requirement would only remain effective until June 30th, 1975. The president had the option of moving the state to an earlier time contingent upon fuel shortages in the United States. With this bill, Richard Nixon also signed a railroad bill that allowed the merging of several prominent railroads. This action was meant to revamp the railroad freight System in the United States and to save money on fuel. Speed limit signs all over the country had to be changed from 60, 65, 70, and 75 m.p.h. to 55.