Key facts
- President Donald Trump announced he approved new fuel economy standards that terminate the Biden administration's EV mandate.
- Trump stated the new standards will lead to lower car prices and save families thousands of dollars.
- The Biden administration's standards aimed for an average of 50.4 miles per gallon by model year 2031.
- Trump's proposed plan would require an average of 34.5 miles per gallon for cars and light trucks in model year 2031.
- The Trump administration claims its actions will save Americans $109 billion in total travel over the next five years.
US President Donald Trump announced on Saturday that he approved new fuel economy standards that terminate the Biden administration's electric vehicle (EV) mandate. Trump posted on Truth Social that the new standards will "take the waste out of building cars in America," leading to "LOWER PRICES, saving families thousands on a new, beautiful, and safe car."
The Biden administration's standards, enacted in June 2024, mandated a 2% annual increase in fuel efficiency for passenger cars and light trucks, aiming for an average of 50.4 miles per gallon by model year 2031. The administration projected these standards would save Americans over $23 billion in fuel costs and reduce pollution.
According to the Trump administration, Biden's standards would have compelled widespread shifts to EVs and raised the average cost of a new car by nearly $1,000. Trump stated his administration's actions will save Americans $109 billion in total travel over the next five years. Trump described the Biden CAFE standards as "ridiculously burdensome" and "horrible," imposing expensive restrictions on automakers.
Trump's proposed plan would lower the standard, requiring automakers to reach an average of 34.5 miles per gallon for cars and light trucks in model year 2031. A 45-day public comment period will begin for the proposed rule, with a public hearing to be announced by the U.S. Department of Transportation.
The Trump administration also highlighted other actions, including ending California's EV mandates and setting the civil penalty for violating CAFE standards to $0. They also revised rules for the National Electric Vehicle Infrastructure Formula (NEVI) Program.