Key Highlights
- The Trump administration is proposing new fuel economy standards for vehicles that would roll back efficiency rules implemented under former President Biden.
- The Transportation Department proposal would set the industry average for light-duty vehicles at roughly 34.5 miles per gallon through the 2031 model year, lower than the 50 miles per gallon outlined by a Biden-era rule.
- President Trump said, “We’re making it easier for every family to afford high-quality cars.”
- The proposed rules have received support from some auto industry executives and companies like Stellantis and General Motors.
Background on Fuel Economy Standards
Federal fuel economy regulations, known as CAFE (Corporate Average Fuel Economy) standards, are overseen by the National Highway Traffic Safety Administration. These rules aim to reduce greenhouse gas emissions and help consumers save money on gas.
Enacted in 1975, these standards stipulate how many miles vehicles must be able to drive on a gallon of fuel, with specific requirements for light-duty vehicles as well as medium- and heavy-duty trucks. The regulations are intended to spur the production of more electric vehicles, a key Biden administration priority.
Trump Administration’s Proposal
The Trump administration is proposing to roll back these fuel economy standards. Under the Transportation Department proposal unveiled at a White House event on Wednesday, automakers would need to meet less stringent vehicle mileage requirements. Specifically, the plan sets the industry average for light-duty vehicles at roughly 34.5 miles per gallon through the 2031 model year.
President Trump stated from the Oval Office, “We’re making it easier for every family to afford high-quality cars.” Transportation Secretary Sean Duffy added that the previous rules drove up the cost of new cars and were “completely unattainable” for automakers. He had initially directed NHTSA to review the CAFE regulations in January.
Industry Response and Implications
The proposal has received support from some auto industry executives and companies like Stellantis, whose CEO Antonioa Filosa expressed backing for the initiative, saying it would “realign the CAFE standards with real-world market conditions as part of its wider vision for a growing U.S. automotive industry.” General Motors also supported the proposed fuel economy standards.
However, critics argue that these rules are costly for automakers and raise vehicle prices. The Center for Biological Diversity said the Transportation Department proposal will increase oil consumption and undermine the competitiveness of U.S. automakers. Dan Becker, director of the Center’s Safe Climate Transport Campaign, stated, “Trump’s action will feed America’s destructive use of oil, while hamstringing us in the green tech race against Chinese and other foreign carmakers.”
The proposed rules would roll back a rule finalized in June 2024 under the Biden administration aimed at raising minimum gas mileage for passenger cars and light trucks by model year 2031. At the time, NHTSA said these new regulations would save Americans $23 billion at the gas pump and reduce pollution.
