Key facts
- The Trump administration is set to announce sharply lower vehicle fuel-economy standards.
- The new standards aim to reduce the fleetwide average to 34.5 miles per gallon by 2031, down from 50.4 mpg.
- The administration projects the change will save Americans $109 billion over five years and $1,000 on average for new vehicles.
- The initiative, dubbed "Freedom Means Affordable Cars," seeks to eliminate what is described as a "backdoor electric vehicle mandate."
- Automakers like Ford and Stellantis have expressed support for the revised standards.
The Trump administration is set to announce a rollback of vehicle fuel economy standards previously established under the Biden administration. Transportation Secretary Sean Duffy stated that the new "Freedom Means Affordable Cars" proposal aims to create common-sense standards that align with consumer demand for vehicles that Americans want to buy, rather than those dictated by political preferences.
The National Highway Traffic Safety Administration (NHTSA) proposed significantly reducing the fleetwide average fuel economy requirements for model years 2022 to 2031. The new targets would require an average of 34.5 miles per gallon by 2031, a substantial decrease from the 50.4 miles per gallon mandated under the previous administration.
President Donald J. Trump, alongside Secretary Duffy, unveiled the proposal, emphasizing its potential to save American families billions of dollars. The administration projects that the changes will save consumers approximately $109 billion over the next five years and reduce the average cost of a new vehicle by $1,000. Furthermore, NHTSA estimates that by enabling more families to afford newer, safer vehicles, the policy could save over 1,500 lives and prevent nearly a quarter-million serious injuries by 2050.
Secretary Duffy criticized the Biden-Buttigieg administration's previous standards, calling them an "illegal EV mandate" that inflated car prices and forced manufacturers to produce unwanted vehicles. He asserted that the new administration prioritizes affordable cars and consumer choice.
NHTSA Administrator Jonathan Morrison echoed these sentiments, stating that restoring reasonable fuel economy standards will enhance road safety by making newer vehicles more accessible. He highlighted the team's work in developing the proposal.
Automakers, including Ford and Stellantis, have voiced support for the administration's move. Ford CEO Jim Farley noted the alignment with market realities and customer choice, while Stellantis CEO Antonio Filosa appreciated the re-alignment with market conditions and the freedom for customers to choose vehicles at affordable prices. President Trump also indicated plans to revoke California's emissions waivers, a move that had previously been overturned by the Senate.