Trump Administration Lowers Fuel Economy Standards as Gas Prices Surge/ TezzBuzz/ WASHINGTON/ J. Mansour/ The Trump administration lowered federal fuel economy requirements for new cars and light trucks, projecting a fleetwide average of 34.9 mpg by 2031. Automakers say the change will make vehicles more affordable, while environmental groups warn that drivers will consume more gasoline and produce greater pollution. The rollback comes as the Iran war disrupts global energy supplies and pushes average U.S. gasoline prices to $4.47 per gallon.
Quick Look
- The new fleetwide target is approximately 34.9 mpg for model year 2031.
- Biden-era rules projected a 50.4 mpg average by 2031.
- The 2024 fleetwide average was approximately 30.1 mpg.
- The administration says the change will reduce new-vehicle prices by $1,300.
- The Transportation Department projects $138 billion in savings over five years.
- Environmentalists predict increased carbon, soot and smog pollution.
- Transportation accounts for about 28% of U.S. greenhouse gas emissions.
- Automakers generally welcomed the relaxed requirements.
- EVs represented 5.7% of new-vehicle sales in August.
- Federal EV tax credits of up to $7,500 have been terminated.
- Gasoline averaged $4.47 per gallon Monday.
- The average new vehicle cost $50,089 in August.
Deep Look
Trump Administration Relaxes Mileage Requirements
DETROIT — The Trump administration released new fuel economy standards Monday that reduce the efficiency requirements automakers must meet for gasoline-powered cars and light trucks.
The change advances President Donald Trump’s campaign to reverse policies that promoted electric-vehicle production and adoption.
Critics warn that the weaker requirements will expose Americans to more greenhouse gas emissions and other vehicle pollution.
The announcement came shortly after Trump rejected an Iranian proposal to reopen the Strait of Hormuz, a decision that contributed to higher global oil prices.
New Rules Set 34.9 MPG Target
Corporate Average Fuel Economy requirements, commonly known as CAFE standards, determine how far an automaker’s combined fleet of new vehicles must travel on a gallon of gasoline.
The standards were created following the energy crisis of the 1970s and have gradually increased average vehicle efficiency.
The Transportation Department and National Highway Traffic Safety Administration estimated that the final rules would result in a combined fleetwide average of approximately 34.9 miles per gallon for passenger cars and light trucks in model year 2031.
That represents an increase from approximately 30.1 mpg for model year 2024.
It remains substantially below the projected 50.4 mpg average that would have been required in 2031 under standards established by the Biden administration.
NHTSA previously estimated that the Trump administration’s revised standard would be approximately 34.5 mpg.
Administration Says Rule Will Lower Vehicle Prices
Transportation Secretary Sean Duffy described the change as a victory for consumer affordability and vehicle choice.
“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,” Duffy said.
The Transportation Department estimated that the new standards would reduce the average cost of a new vehicle by $1,300.
It also projected that Americans would save a combined $138 billion during the next five years.
Trump wrote on Truth Social that the less stringent standards would “take the waste out of building cars in America” and save families “thousands on a new, beautiful and safe car.”
He also argued that the change would increase automobile production in the United States.
No Federal EV Sales Mandate Existed
Trump has repeatedly pledged to eliminate what he calls an electric-vehicle “mandate.”
The description inaccurately refers to former President Joe Biden’s goal of having electric vehicles account for half of all new automobile sales by 2030.
No federal rule required automakers to sell a specific percentage of electric vehicles.
The Biden administration instead used emissions and fuel economy regulations, tax credits and other incentives to encourage the transition toward cleaner vehicles.
Environmental Groups Warn of Greater Pollution
Environmental organizations quickly criticized the revised standards.
The Transportation Department said the rule would reduce annual oil consumption in 2050 by approximately 1.3 billion barrels compared with annual consumption in 2024.
When the previous standards took effect, however, NHTSA estimated they would prevent 14 billion gallons of gasoline from being burned by 2050.
The agency previously acknowledged that more efficient vehicles could cost more initially but said lifetime fuel savings would outweigh the higher purchase price.
Environmental groups estimate that vehicles could produce 22,111 additional tons of carbon dioxide annually by 2035 compared with emissions under the Biden-era standards.
Experts also project an additional 90 tons of deadly soot particles and 4,870 more tons of smog-forming pollutants—including nitrogen oxides and volatile organic compounds—each year.
Transportation Is Major Source of Emissions
Transportation is one of the largest sources of U.S. greenhouse gas emissions.
The sector accounted for approximately 28% of national emissions in 2022, the latest estimate cited with the rule.
Dan Becker, director of the Center for Biological Diversity’s Safe Climate Transport Campaign, said the policy “ignores the feasibility of clean technology and the millions of fuel-efficient cars already on the road.”
Environmental groups contend that weaker efficiency standards will increase fuel consumption, expose communities to dirtier air and raise drivers’ long-term expenses.
Trump Rolls Back Other Vehicle Policies
The mileage standards are part of a broader administration campaign to reverse federal clean-vehicle policies.
Since returning to office, Trump has weakened automobile tailpipe-emission rules and repealed financial penalties for automakers that fail to comply with federal mileage standards.
His administration also ended consumer tax credits worth as much as $7,500 for electric-vehicle purchases.
Electric vehicles represented 5.7% of total new-vehicle sales in August, according to Cox Automotive.
That was down from 7.4% for all of 2025.
Sierra Club Promises to Fight Rule
Katherine García, director of the Sierra Club’s Clean Transportation for All campaign, said the organization would challenge the revised policy.
“Less fuel-efficient cars mean more gas burned, spending more at the pump, and dirtier air in our communities,” Garcia said.
Environmental advocates argue that any reduction in vehicle purchase prices could be offset by higher lifetime fuel costs, especially when gasoline prices are elevated.
Auto Industry Welcomes Changes
Automakers and industry organizations generally supported the Trump administration’s decision.
They said the revised requirements would give manufacturers more flexibility to offer gasoline, hybrid and electric vehicles at prices consumers can afford.
“NHTSA made the right call to better align fuel economy standards with the law and current market conditions,” said John Bozzella, president and CEO of the Alliance for Automotive Innovation.
The organization represents the domestic automobile industry.
Bozzella said the previous rules “effectively required a switchover to electric vehicles that was out of step with market realities and customer demand. Today’s final rule is an appropriate course correction.”
“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,” he added. “This is the formula for preserving consumer vehicle choice and keeping the U.S. auto industry globally competitive.”
Ford, GM and Stellantis Voice Support
Ford Motor Company, manufacturer of the bestselling F-150 pickup truck, said it was reviewing the final rule.
“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,” a Ford spokesperson said.
General Motors said it supports the rule’s objectives “and its intention to better align fuel economy standards with market realities.”
Stellantis also welcomed the change.
“These standards will allow us to offer our customers the freedom to choose from a range of vehicles and powertrains that meet their needs, from brands they love and trust,” a Stellantis spokesperson said.
Gas Prices Rise Amid Iran War
The weaker mileage standards arrive as Americans face rapidly increasing fuel costs.
The U.S. war with Iran has disrupted the global energy supply, while uncertainty surrounding the Strait of Hormuz has driven oil prices higher.
The national average for regular gasoline reached $4.47 per gallon Monday, according to AAA.
That was up from $3.13 per gallon one year earlier.
Rising oil prices also placed pressure on the U.S. stock market at the beginning of the week.
“Trump is tanking sensible mile per gallon standards at the worst possible time for consumers, who are getting hit with sky-high prices at the pump,” Becker said. “Consumers will pay the price for these reckless rollbacks while Trump’s Big Oil and Big Auto buddies reap the short-term profits.”
New Vehicles Remain Expensive
Industry experts caution that less stringent standards may not necessarily convince more consumers to purchase new vehicles, even if regulatory compliance costs decline.
New automobiles frequently include advanced safety technology, but prices remain beyond the reach of many households.
The average new vehicle sold for $50,089 in August, according to Kelley Blue Book.
That marked the first time since December that the average price exceeded $50,000.
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