Trump Administration Finalizes Weaker Fuel Economy Standards

The Trump administration finalized new federal fuel economy rules requiring automakers’ fleets to average 34.9 miles per gallon by model year 2031, sharply reducing a Biden-era target of 50.4 mpg for the same year.

The Department of Transportation called the change one of the second Trump administration’s largest deregulatory actions. The rules cover passenger cars and light trucks and allow annual fuel-efficiency increases of up to 1 percent. Ars Technica reported that plug-in vehicles will no longer count toward an automaker’s fleet average and that emissions credits will be eliminated beginning with model year 2028.

Transportation Secretary Sean Duffy said the lower standards would reduce vehicle prices. The administration estimates the rule will cut the average cost of a new vehicle by $1,300 and save $138 billion over five years, though analysts and advocacy groups dispute those projections. Automakers welcomed the change, and Yahoo Finance reported that the government estimated General Motors’ technology costs would fall by $20 billion through 2031 under new emissions rules.

Environmental, public-health and consumer groups said the rollback would increase gasoline use, pollution and household fuel expenses. The Environmental Defense Fund estimated that lower efficiency could cost drivers at least $1,600 more in fuel over a vehicle’s lifetime. The American Lung Association said existing standards were technologically feasible and helped reduce both driving costs and harmful air pollution.