Trump administration finalizes rollback of US fuel-economy standards

September 29, 2026 at 04:21 AM2 min

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The Trump administration on Monday finalized a rollback of US fuel-economy standards, cutting the required fleetwide average for model year 2031 vehicles to about 34.9 miles per gallon from the Biden-era 50.4 mpg. The National Highway Traffic Safety Administration published the new Corporate Average Fuel Economy standards, which the Department of Transportation said would reduce vehicle costs and boost sales. The move drew praise from automakers and criticism from health and environmental groups, even as US gasoline prices averaged $4.48 per gallon amid the war in Iran.

Key Facts

The new standards set a fleetwide average of about 34.9 miles per gallon for model year 2031 vehicles, down from the 50.4 mpg required under the 2022 Biden-era rule.
Transportation Secretary Sean Duffy said the rule ended an 'illegal mandate' that forced automakers to produce more expensive electric vehicles.
The Alliance for Automotive Innovation, representing automakers, called the final rule 'an appropriate course correction'.
The American Lung Association said weakening fuel economy standards will create more air pollution, harm health, and accelerate climate change.
Transportation accounts for about 28 percent of US greenhouse gas emissions, more than electric power generation at 25 percent or industry at 23 percent, according to the EPA.

The New Standards

The National Highway Traffic Safety Administration, part of the Department of Transportation, published the new Corporate Average Fuel Economy standards on Monday. The standards reduce fuel efficiency requirements for new passenger cars and light trucks manufactured between 2022 and 2031. The Department of Transportation estimates the new standards correspond to an industry fleetwide average of about 34.9 miles per gallon for model year 2031 vehicles. The previous standard, set in 2022 during the Biden administration, would have required around 50.4 miles per gallon. The DOT said the move would give automakers more flexibility, reduce the average cost of a new vehicle, and encourage new car sales.

Industry and Health Reactions

The Alliance for Automotive Innovation praised the new standards, with President and CEO John Bozella saying the previous rules were 'out of step with market realities and customer demand'. Bozella called the final rule 'an appropriate course correction'. American Lung Association President and CEO Harold Wimmer said the rule 'will create more air pollution, harm health and accelerate climate change'. Wimmer added that fuel economy standards have saved lives and money for decades and that there is no reason to weaken technologically feasible standards. Studies show air pollution is responsible for 9 million deaths per year worldwide, a figure cited by critics of the rollback.

Emissions and Fuel Prices

Transportation accounts for about 28 percent of US greenhouse gas emissions, according to the Environmental Protection Agency. That share exceeds electric power generation at 25 percent and industry at 23 percent. Monday's rule finalized plans Trump announced in December to reduce fuel efficiency standards. In the interim, the war in Iran sent US gasoline prices to an average of $4.48 per gallon, according to the American Automobile Association.