The Trump administration announced on Monday that it is scaling back the Corporate Average Fuel Economy (CAFE) standards, which dictate how fuel-efficient American automakers must make their vehicles. The revised rules, finalized on September 28, require carmakers to improve the average fuel economy of their new passenger car and truck fleets by up to 1% annually, targeting an average of 34.9 miles per gallon by model year 2031.
This represents a significant reduction from the regulations established under the Biden administration, which mandated a 2% annual increase with the goal of reaching an average of 50.4 miles per gallon by the same deadline.
Administration officials have defended the rollback on the grounds of affordability. They argue that the technology required for higher fuel efficiency increases vehicle costs and estimate that the new standards will reduce the sticker price of new cars by approximately $1,300.
“This administration is delivering relief to families and reviving the beating heart of American manufacturing,” said U.S. Transportation Secretary Sean Duffy in an online statement regarding the change.
President Trump also weighed in over the weekend on Truth Social, asserting that the new standards would eliminate waste in the American auto industry. “That means LOWER PRICES, saving families thousands on a new, beautiful, and safe car,” he wrote.
Climate advocates and industry observers view the decision as part of a broader effort to undo Biden-era climate policies. This move follows previous actions by the current administration, including cutting the federal tax credit for electric vehicle buyers, delaying funding for a nationwide EV charging network, and revoking federal waivers that allowed California to enforce its own stricter pollution regulations.
Critics argue the change carries significant downsides. Dan Becker, director of the Safe Climate Transport Campaign at the Center for Biological Diversity, stated in an email to NPR that rolling back the standards would lead to increased gasoline consumption and pollution. He warned that these changes would ultimately cost consumers more at the pump and result in higher healthcare expenses due to worsened air quality.
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