The Trump administration released new, more relaxed fuel economy standards aimed at requiring pollution from gas-powered cars and light trucks.
Under the new Corporate Average Fuel Economy, or CAFE, standards, the Department of Transportation and National Highway Traffic Safety Administration estimate the combined industry fleet will average roughly 34.9 miles per gallon by model year 2031. That compares with 30.1 mpg for model year 2024, but is dramatically below the approximately 50.4 mpg projected for 2031 under standards finalized during the Biden administration.
CAFE standards, created following the 1970s energy crisis, regulate how far vehicles must travel on a gallon of fuel and have historically pushed automakers toward increasingly efficient cars and trucks.
Transportation Secretary Sean Duffy framed the rollback as an affordability measure, saying, "Thanks to President Trump's leadership, we have finally ended the illegal mandate that forced automakers to produce more expensive electric vehicles that American families didn't want." The Transportation Department estimates the changes will reduce the average cost of a new vehicle by about $1,300 and save Americans $138 billion over five years.
Major auto industry groups back the administration's argument. John Bozzella, president and CEO of the Alliance for Automotive Innovation, said the "NHTSA made the right call to better align fuel economy standards with the law and current market conditions."
"What the industry needs is long-term regulatory stability that includes balanced, durable and achievable fuel economy standards that continue to reduce emissions and improve fuel economy," Bozzella said. "This is the formula for preserving consumer vehicle choice and keeping the U.S. auto industry globally competitive."
A spokesperson for Ford told the media that "We appreciate Secretary Duffy and the Administration's work to align regulations with market realities. As we evaluate the final rule's full impact on our business, we'll continue working with the Administration to build a strong American auto industry."
When the Biden-era standards were finalized in 2024, NHTSA projected they would raise average light-duty fuel economy to approximately 50.4 mpg by 2031. The agency estimated those standards would save nearly 70 billion gallons of gasoline and prevent more than 710 million metric tons of carbon dioxide emissions through 2050.
Environmental advocates estimate the Trump administration's weaker requirements could result in vehicles producing 22,111 additional tons of carbon dioxide annually by 2035 compared with the previous standards. They also project an additional 90 tons of soot particles and 4,870 tons of smog-forming pollutants, including nitrogen oxides and volatile organic compounds, annually.
Dan Becker, director of the Center for Biological Diversity's Safe Climate Transport Campaign, said the rule "ignores the feasibility of clean technology and the millions of fuel-efficient cars already on the road."
The rollback comes as the administration dismantles several Biden-era policies intended to accelerate the transition toward cleaner vehicles. Trump has pulled back tailpipe-emissions requirements, eliminated penalties for automakers that fail to meet federal mileage requirements, and ended consumer tax credits of up to $7,500 for qualifying electric vehicles.
Trump has repeatedly characterized the previous administration's policies as an EV "mandate." Biden had set a goal for electric vehicles to represent half of new vehicle sales by 2030, but the federal government did not require automakers to sell a specific percentage of EVs.
The policy shift is arriving as EV growth has slowed and Americans continue gravitating toward SUVs and trucks. It also comes during a renewed affordability squeeze. According to AAA, gasoline prices averaged $4.47 per gallon Monday, compared with $3.13 a year earlier, as the Iran conflict puts pressure on global energy markets. Meanwhile, the average new vehicle sold for more than $50,000 in August.
