Trump plans to reverse Biden's fuel efficiency standards for vehicles

President Donald Trump is preparing to roll back the vehicle fuel efficiency standards introduced under the Biden administration. The announcement, scheduled for December 3 at the White House, aims to make it simpler for automakers to sell gasoline-powered cars and trucks.

First enacted in 1975, the Corporate Average Fuel Economy (CAFE) rules determine the miles a vehicle must travel per gallon of fuel. According to a White House official, the National Highway Traffic Safety Administration (NHTSA) plans to propose lowering the fuel economy targets for model years 2022 through 2031, potentially saving U.S. consumers $109 billion.

The White House emphasized that Biden-era regulations would have raised the average cost of a new vehicle by $1,000. Officials stated that the previous standards would have forced significant shifts toward electric vehicles, which were not widely demanded by consumers, and would have contributed to higher living costs.

Executives from Ford, General Motors, and Stellantis (Chrysler's parent company) were expected to attend the announcement at the White House.

Biden Administration Fuel Economy Rules

In 2022, the Biden administration introduced new standards targeting an average fuel efficiency of about 49 miles per gallon for passenger cars and light trucks by model year 2026. The plan aimed for an 8% annual increase in fuel efficiency for 2024-2025 models and 10% for 2026, raising the overall fleet average by nearly 10 miles per gallon compared to 2021. For model years 2027-2031, the administration projected annual fuel efficiency gains of 2%, reaching roughly 50.4 miles per gallon by 2031.

Trumps Proposed Changes

The forthcoming rollback will significantly reduce the fuel economy targets for 2022-2031 vehicles, though the precise figures have not been disclosed. Earlier in the year, Trump signed legislation eliminating fuel economy penalties for automakers, effectively removing fines retroactively to the 2022 model year. Measures also include rescinding electric vehicle tax credits and blocking California from banning gasoline-powered vehicle sales after 2035. In June, Trump overturned California's EV mandates and diesel engine rules through Congressional Review Act resolutions.

Industry Reactions

Ford CEO Jim Farley praised the move, stating it aligns fuel economy standards with market realities while allowing consumers choice and affordability. GM CEO Mary Barra explained that previous state-level EV mandates, such as Californias 35% EV sales target for 2026, would have forced plant shutdowns due to production limitations.

Environmental advocates voiced concern. Darien Davis of the League of Conservation Voters warned that weakening fuel economy standards could raise costs for drivers and hinder efforts to reduce air pollution and associated health risks.

Author: Logan Reeves