President Donald Trump approved new vehicle fuel economy standards, rolling back Biden-era efficiency targets through 2031. The Transportation Department will finalize the rule on Monday, setting fleetwide averages to 34.5 miles per gallon while administration officials argue the change will lower car prices and boost domestic auto manufacturing.
The Trump administration is set to release sweeping rollbacks to federal vehicle fuel efficiency mandates on Monday, dismantling the core of the previous administration’s push toward electric vehicle adoption. President Donald Trump announced the approval of the new standards on Saturday, framing the regulatory shift as a major boon for domestic car buyers and manufacturers.
Under the incoming rule, fleetwide fuel economy targets for 2031 model-year vehicles will drop to 34.5 miles per gallon, or about 14.7 kilometers per liter, according to Department of Transportation estimates. That target marks a sharp retreat from the aggressive trajectory pursued by former President Joe Biden, whose administration had mandated a standard of 50.4 miles per gallon by 2031.
Transportation Department Details and Projected Economic Impacts
Transportation Secretary Sean Duffy confirmed that the new Corporate Average Fuel Economy standards will be published on Monday. The administration’s own projections indicate the rollback will reduce the initial purchase cost of new vehicles by an average of $930 each, offering immediate relief to consumers facing high vehicle prices.
However, the department’s estimates also reveal significant long-term trade-offs. The relaxed efficiency rules will increase fuel consumption by approximately 100 billion gallons through 2050, drive up total fuel spending by $185 billion, and raise carbon dioxide emissions by about 5%.
“These new Standards will take the waste out of building cars in America. That means LOWER PRICES, saving families thousands on a new, beautiful, and safe car — Far better than the Environmental Monsters that we were building heretofore.”
President Donald Trump, via social media statement
Political Reactions and Industry Stances on the Mandate Reversal
The regulatory rollback highlights a sharp division over the future of the American auto industry. Traditional automakers and oil industry representatives complained that the Biden-era requirements pushed the boundaries of available technology and effectively penalized the production of standard gasoline-powered vehicles.
Ford CEO Jim Farley previously praised plans to ease the fuel standards, calling the approach a victory for affordability and common sense
during a television interview in December. Ford and other major manufacturers such as General Motors and Stellantis were cited by the administration as supportive of building vehicles domestically under the revised framework.
Conversely, environmental advocates and former administration officials condemned the decision. Pete Buttigieg, who led the Transportation Department under Biden, argued that lowering the standards hands clean technology advantages to international competitors while increasing pain at the pump for motorists.
The announcement arrives as consumers grapple with elevated fuel costs, driven in part by international conflicts affecting oil supplies. Critics argue that weaker efficiency standards will ultimately leave drivers more vulnerable to volatile energy markets.
Atid Kimelman, an attorney at the environmental nonprofit Natural Resources Defense Council, said that the Trump administration will force Americans to pay more at the pump while they are already struggling to afford gasoline costing more than $4 a gallon. Kimelman added that while oil companies would receive a windfall from gutting fuel economy standards, others would be handing over more of their hard-earned paychecks to fill up their tanks.
The administration has maintained that these regulatory changes will reduce burdens on manufacturers and provide consumers with more flexibility in their choice of vehicles.
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