Trump Administration Finalizes Lower Vehicle Fuel Economy Standards

The US Transportation Department will finalize significantly lower vehicle fuel economy standards through 2031, rolling back Biden-era rules that pushed automakers toward increased electric vehicle production. Transportation Secretary Sean Duffy said the new standards, set to be unveiled Monday, represent a win for American auto workers, while President Trump stated the changes will lower new vehicle prices.

Fleetwide Average Drops Sharply Under New Standards

The Transportation Department’s proposal sets a fleetwide average of 34.5 miles per gallon by 2031, a steep reduction from the 50.4 miles per gallon target established under the Biden administration. Officials estimate the changes will cut average new vehicle costs by $930 each. However, the department’s own projections show fuel consumption increasing by around 100 billion gallons through 2050, adding $185 billion in fuel spending and raising carbon dioxide emissions by about 5%.

Policy Shift Comes Amid Rising Fuel Prices

The rollback arrives as American drivers face higher fuel costs following the conflict between the US, Israel and Iran. Biden’s original rules had increased required fuel efficiency by 8% annually for 2024 and 2025, then 10% for 2026. Critics argue the reversal will slow the shift toward cleaner vehicle technology and increase long term costs for consumers at the pump.