Trump Finalizes Fuel Economy Rollback to Lower Car Prices

President Donald Trump finalized new fuel economy standards on September 29, 2026, significantly reducing the efficiency requirements for passenger cars and light trucks. Under the new "Freedom Means Affordable Cars" initiative, the fleetwide average fuel economy target for model year 2031 was set at 34.9 miles per gallon, a sharp decrease from the 50.4 mpg target established under the Joseph Biden administration.

Transportation Secretary Sean Duffy characterized the move as an end to an "illegal mandate" for expensive electric vehicles. The administration claims the rollback will reduce the average cost of a new vehicle by $1,300 and save Americans $138 billion over five years. The National Highway Traffic Safety Administration further estimated the broader auto industry would save $60.6 billion in technology costs through 2031, with General Motors alone projected to save $20.4 billion.

Industry groups, including the Alliance for Automotive Innovation, praised the rule as an "appropriate course correction" that aligns with market demand. However, the U.S. Department of Transportation's own estimates indicate the move will increase carbon dioxide emissions by 5% and increase fuel consumption by 100 billion gallons through 2050. Environmental organizations, such as the Sierra Club and the Center for Biological Diversity, condemned the decision as a "free pass on pollution" and have vowed to challenge the rule in court, arguing it will increase costs for drivers at the pump.