Trump Administration Rolls Back Biden-Era Fuel Economy Standards, Targeting Just 34.9 MPG by 2031

The National Highway Traffic Safety Administration (NHTSA), part of the Department of Transportation (DOT), finalized new Corporate Average Fuel Economy (CAFE) standards on Monday, sharply lowering the fuel efficiency targets automakers must hit for new cars and light trucks built between 2022 and 2031. The agency now projects a fleetwide average of 34.9 miles per gallon by model year 2031, down from the 50.4 mpg the Biden administration had projected under its 2022 rule. The DOT says the change will lower the average cost of a new vehicle by about $1,300 and save Americans a combined $138 billion in vehicle costs over five years.

The new rule also eliminates the credit-trading system that let automakers buy fuel-efficiency credits from electric vehicle makers to offset gas-heavy fleets, a mechanism Republicans have criticized for years. It follows a string of related moves this year: the administration already eliminated fines for automakers who miss CAFE targets, the 2025 tax and spending law killed the $7,500 EV tax credit, and the Environmental Protection Agency repealed Biden-era power plant carbon rules in February. CAFE standards themselves date to a bipartisan 1975 law passed after the OPEC oil embargo, and are set separately from EPA emissions rules.

The Alliance for Automotive Innovation, which represents major carmakers, backed the change, while the Natural Resources Defense Council and other environmental groups say it will raise fuel costs for drivers already paying more than $4 a gallon at the pump.

What supporters say:

  • The Alliance for Automotive Innovation's CEO said the new standards better align fuel economy rules with the law and current market conditions.

  • The DOT projects the change will cut the average price of a new vehicle by roughly $1,300, making cars more affordable for buyers.

  • Ending the EV credit-trading system removes a subsidy critics say let automakers avoid improving gas-vehicle efficiency by simply buying credits.

What critics say:

  • The Natural Resources Defense Council estimates the rollback could cost the average driver an extra $1,400 in fuel over a vehicle's lifetime.

  • NHTSA's own new target, 34.9 mpg, sits below what the current on-road fleet already achieves, according to the NRDC, undercutting the law's mandate to set standards at "maximum feasible levels."

  • Environmental groups say the change reverses progress on emissions just as the administration has also cut EV incentives and repealed power plant carbon rules.

What's your take?

Was rolling back the fuel economy standards the right call? Yes ↑ No ↓ Other ◇

Sources:

#CAFEStandards #FuelEconomy #NHTSA #ClimatePolicy #Automakers

Now let's hear from you.

  • You get one Take and 3 ratings so use them well.

  • Strong arguments beat loud ones. See Moving The Needle (How to)

  • Don't forget to rate your own Take.

  • Please don't feed the trolls.

About Square One

Image 1