The US Department of Transportation finalized its plan on Monday to weaken fuel economy standards, calling it "among the largest deregulatory actions under the second Trump Administration." The new rules replace Biden-era standards that would have required fleet average fuel economy to reach 50.4 miles per gallon by model year 2031. Under President Donald Trump's plan, automakers must meet 34.9 miles per gallon, a modest increase from the 30.1-mile-per-gallon target set for model year 2024.
The Trump administration claims its plan would shave $1,300 off the average cost of a new vehicle. President Trump has repeatedly referred to the previous standards as a so-called "EV mandate" that steered consumers toward electric vehicles against their wishes. Consumer advocacy, health, and environmental groups are incensed by the changes, arguing they will increase fuel costs for drivers and worsen air pollution and greenhouse gas emissions.
The final rule represents a sharp reversal of the previous administration's climate policies and sets up likely legal challenges from states and environmental organizations. The auto industry faces renewed uncertainty as it navigates between federal requirements that have shifted dramatically over the past four years.