Trump administration sharply reduces fuel economy requirements for new vehicles

The Trump administration finalized rules Monday that sharply reduce federal fuel economy requirements for new passenger cars and light trucks, reversing standards adopted under former President Joe Biden.

Under the revised Corporate Average Fuel Economy standards, automakers will be required to improve the efficiency of their new-vehicle fleets by up to 1% annually, reaching an average of 34.9 miles per gallon for model year 2031, according to NPR. The Biden-era rules called for 2% annual increases from 2027 through 2031 and projected a 50.4 mpg fleet average by 2031.

The Transportation Department named the initiative “Freedom Means Affordable Cars.” Transportation Secretary Sean Duffy said the change would lower vehicle costs and support U.S. manufacturing. The department estimates the relaxed requirements will reduce the average price of a new vehicle by about $1,300 and save consumers $138 billion over five years. President Donald Trump said the standards would cut waste in vehicle production, lower prices and boost domestic auto output.

Environmental organizations criticized the rollback, arguing that it will increase gasoline consumption, pollution and drivers’ fuel costs. Dan Becker of the Center for Biological Diversity said the rule disregards available fuel-saving technology, while the Sierra Club said it would fight the change.

The action is part of the administration’s broader reversal of Biden-era vehicle and climate policies, including measures intended to encourage electric-vehicle adoption. Federal policy did not require automakers to sell electric vehicles, although Biden had set a target for half of new-vehicle sales to be electric by 2030.