Trump Rolls Back Biden-Era Fuel-Economy Standards, Promising Lower Car Prices

President Donald Trump announced on Saturday that his administration has approved new Corporate Average Fuel Economy (CAFE) standards that replace the stricter rules adopted under the Biden administration. He framed the change as an “elimination” of the electric-vehicle (EV) mandate and said the new standards will reduce vehicle prices and revive manufacturing in states such as Michigan, Ohio, Indiana and South Carolina.

Newsweek

CAFE standards, first enacted in 1975, have been tightened over time to improve fuel efficiency. Under President Joe Biden, the agency projected a fleet-wide average of roughly 50 mpg for 2031 model-year vehicles. Earlier this year, the National Highway Traffic Safety Administration (NHTSA) proposed cutting the 2031 target to about 34.5 mpg, arguing that the prior rules relied too heavily on projected EV adoption and compliance credits.

Newsweek

• Proposed target: 34.5 mpg for 2031 model-year vehicles (vs. ~50 mpg under the Biden proposal).

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• Cost impact: NHTSA estimated the proposal would lower the average upfront price of a new vehicle by roughly $930 and generate about $109 billion in consumer savings over five years.

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• Fuel consumption: The analysis projected an increase of about 100 billion gallons of gasoline through 2050, adding roughly $185 billion in fuel spending and raising CO2 emissions by 5 %.

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• Tax-credit timeline: Congress ended federal tax credits for new, used and commercial EVs acquired after September 30, 2025.

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• Trump thanked Transportation Secretary Sean Duffy and Commerce Secretary Howard Lutnick for helping advance the policy.

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• NHTSA said its earlier proposal aimed to reduce compliance costs for manufacturers and argued that the previous standards’ reliance on EV-related credits conflicted with the 1975 Energy Policy and Conservation Act. A final rule is expected to mirror the 34.5 mpg proposal.

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• Atid Kimelman, attorney with the Natural Resources Defense Council, warned that “with Americans struggling to afford gasoline that is more than $4 a gallon, the Trump administration is going to force them to pay more at the pump.”

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• Katherine García, director of the Sierra Club’s “Clean Transportation for All” campaign, called the rollback “senseless” and said it will make driving more expensive for families.

The Hill

• Pete Buttigieg, former Biden Transportation Secretary, said lowering standards will accelerate clean-technology leadership to China and raise pump prices.

The Hill

• Fuel-economy targets: Sources differ on whether the final rule will match the 34.5 mpg proposal or include additional changes; the administration has not released the final text.

Newsweek

• Cost-saving estimates: NHTSA projects a $930 price reduction per vehicle, while the administration’s “Freedom Means Affordable Cars” projection cites $1,000 savings on average.

Newsweek

• Environmental impact: Estimates of increased fuel consumption and emissions vary between agency projections and independent analysts, leaving the net climate effect uncertain.

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• “These new Standards will take the waste out of building cars in America. That means LOWER PRICES, saving families thousands on a new, beautiful, and safe car,” — Donald Trump

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• “With Americans struggling to afford gasoline that is more than $4 a gallon, the Trump administration is going to force them to pay more at the pump,” — Atid Kimelman

Newsweek

A U.S. official confirmed that the revised CAFE standards will be released on Monday. The rule’s specifics—including exact fuel-economy targets and compliance timelines—remain undisclosed. The administration plans to study additional measures to curb rising fuel prices ahead of the November midterm elections.

Bloomberg