President Donald Trump's administration has finalized a major rollback of federal fuel economy standards, lowering the average efficiency target for new vehicles in 2031 and reigniting a long-running debate over vehicle prices, gas costs, and air pollution.
According to ABC News, the final rule drops the 2031 target to 34.9 mpg from 50.4 mpg and no longer requires automakers to rely on electric vehicles to meet fleetwide standards.
Here's what to know
Calling the policy "commonsense," Transportation Secretary Sean P. Duffy said the revised standards should make vehicles less expensive for consumers.
The Department of Transportation has said the rollback could reduce new vehicle prices by up to $1,300 and save Americans $138 billion over five years. The argument comes as new vehicles remain expensive, with Kelley Blue Book estimating the average price at $49,855.
Beginning in 2030, the government will also revise how it categorizes passenger vehicles and light trucks. The DOT said the change is intended to reduce regulation-driven design adjustments and could expand the number of smaller, lower-cost vehicles available to buyers.
First introduced in 1975, CAFE (corporate average fuel economy) rules are intended to conserve fuel and reduce reliance on foreign oil. Because automakers must meet fleetwide averages, hybrids and EVs have played an important role in helping companies offset the lower efficiency of larger trucks and SUVs.
TCD Picks » Quince Spotlight
💡These best-sellers from Quince deliver affordable, sustainable luxury for all
More background
The administration has argued that the previous standards functioned like an electric vehicle mandate. However, the National Highway Traffic Safety Administration's 2024 rule did not require automakers to build EVs. Instead, it was performance-based and allowed manufacturers to decide how to comply.
The Environmental Protection Agency said transportation is the nation's largest direct source of greenhouse gas pollution, and cars and trucks account for more than 75% of those emissions.
Katherine García, Sierra Club Clean Transportation for All Director, warned that "less fuel-efficient cars mean more gas burned, spending more at the pump, and dirtier air in our communities."
What's being done?
The Sierra Club and Gina McCarthy, former EPA administrator during the Obama administration and current chair of the advocacy group America Is All In, have criticized the rollback.
McCarthy said: "For fifty years, fuel economy standards have saved Americans money and cut pollution at the same time, creating cleaner air, lowering prices at the pump, and reducing our reliance on fossil fuels. Rather than keeping the U.S. at the forefront of innovation and improving affordability, this administration has chosen to do the opposite."
Meanwhile, the Alliance for Automotive Innovation has welcomed the move.
John Bozzella, president and CEO of the Alliance for Automotive Innovation, said the earlier standards were "out of step with market realities and customer demand" and called the final rule "an appropriate course correction."
Where can I learn more?
For more context, these stories trace how federal vehicle rules have changed across administrations and agencies. They cover Biden-era emissions and mileage standards, as well as newer rollbacks affecting how automakers comply.
• Tesla urged the Biden administration to enact tougher gas-mileage rules for new vehicles.
• Federal regulators eliminated a massive credit for start-stop systems automakers used to boost compliance.
• EPA leadership then announced a rollback of automakers' fuel-saving technology credits, drawing backlash.
• The EPA's planned revocation could trigger a profound shift in American auto industry rules.
Get TCD's free newsletters for easy tips, smart advice, and a chance to earn $5,000 toward home upgrades. To see more stories like this one, change your Google preferences here.
