Trump Administration Lowers Vehicle Fuel Economy Standards

The Trump administration is reversing previous federal efforts to mandate high vehicle fuel efficiency by introducing significantly lower fuel-economy standards. Transportation Secretary Sean Duffy stated the move allows Detroit automakers to build vehicles that consumers want rather than those mandated by the government.

The new standards align with a National Highway Traffic Safety Administration proposal that suggests a fleetwide average of 34.5 miles per gallon by 2031. This represents a sharp decrease from the 50.4 miles per gallon required under the administration of former President Joe Biden. The proposal also includes a retroactive revision of the 2022 standard to provide automakers with more compliance credits.

While the National Highway Traffic Safety Administration estimates the policy could reduce new vehicle costs by $930 per car, the agency warns it will increase carbon dioxide emissions by approximately 5% and add 100 billion gallons of fuel consumption through 2050. This shift follows 2025 congressional actions that ended consumer tax breaks for electric vehicles and stopped the collection of penalties for fuel economy failures.