As the transportation sector continues to decarbonize through electrification, there is growing interest in quantifying potential tradeoffs in air pollution and health impacts due to potential excess emissions from the power sector. This study investigates air pollution and health impacts of policy-driven changes in the transportation sector and the associated power generation demand in the Northeast and Mid-Atlantic United States. Five illustrative scenarios were designed to capture the effects of different policies under the first mandatory market-based program to reduce greenhouse gases in the US power sector (Regional Greenhouse Gas Initiative – RGGI) and the Transportation and Climate Initiative (TCI). Considering future power generation with new renewable energy investments to meet demands from decarbonized transportation, the scenarios were framed using: 1. 2030 reference cases for both sectors and a hybrid TCI portfolio, 2. Departure from the reference cases defined by Pennsylvania included or not in RGGI, and 3. Power grid emissions estimated under Clean Energy Standard (CES) policy and hybrid TCI portfolio. While the cross-sectoral policy effect on domain-wide concentrations is modest (max ΔPM2.5~0.06μg/m3, ΔNO2~0.3ppbv, ΔO3~0.15ppbv), substantial increases in Ohio and WestVirginia were attributed to Pennsylvania joining RGGI. With CES enacted and Pennsylvania in RGGI, significant reductions are seen in average concentrations (max ΔPM2.5~1.2 μg/m3, ΔNO2~1.1ppbv, ΔO3~1.7ppbv) except for Louisiana and Mississippi with corresponding disbenefits. When focusing exclusively on emissions reductions from transportation, the hybrid TCI portfolio had health benefits of 530 avoided adult deaths, and 46,000 avoided asthma exacerbations. With a “business as usual” power grid, these benefits remain comparable and are mainly driven by NO2, followed by PM2.5 and O3. However, if Pennsylvania joins RGGI, total health benefits and spatial distribution change substantially, with a large portion of adverse health impacts moving from TCI states to Ohio and West Virginia. The overall monetized impact of a CES scenario can substantially exceed the estimated average range of 66-69 Billion US$, depending on the interaction with transportation decarbonization strategies and other drivers of exposure.