The U.S. Department of Transportation finalized the Freedom Means Affordable Cars
initiative on September 28, 2026, rolling back fuel economy standards to 34.9 miles per gallon by 2031. The administration claims the move will lower vehicle costs by $1,300, though analysts and environmental groups warn of increased long-term fuel spending and emissions.
Resetting Federal Fuel Economy Standards
The Trump administration has officially revoked the fuel efficiency targets established during the Biden-Buttigieg era, which were projected to require fleet averages of over 50 miles per gallon. Under the new Freedom Means Affordable Cars
rule, the National Highway Traffic Safety Administration (NHTSA) has set a target of 34.9 miles per gallon by model year 2031, an increase from the 30.1 miles per gallon for model year 2024.
Secretary of Transportation Sean P. Duffy described the move as a necessary correction to market realities. Thanks to President Trump’s leadership, we have finally ended the illegal mandate that forced automakers to produce more expensive electric vehicles that American families didn’t want,
Duffy said in a statement released on September 28.
Projected Costs for Consumers and Automakers
The administration’s primary argument for the rollback is a projected $1,300 reduction in the average cost of a new vehicle for American families. According to government estimates, the rule will save consumers $138 billion over the next five years. For manufacturers, the change is expected to reduce technology costs by approximately $1,289 per vehicle, with General Motors alone anticipating a $20 billion reduction in estimated costs through 2031.
However, industry analysts and critics have expressed skepticism regarding whether these savings will reach the consumer. David Shepardson of Reuters noted that while companies will see lower technology expenses, there’s no guarantee or requirement that the auto companies pass that savings onto the consumer in forms of a lower price.
Furthermore, the Transportation Department acknowledged that drivers could pay $1,600 more in fuel costs over the lifetime of a vehicle under the lower standards. This comes as national fuel prices remain high, with diesel recently reaching record national averages of around $6.50 a gallon and gasoline averaging $4.48 a gallon.
Industry and Environmental Reactions
Automakers have largely supported the move toward more flexible standards. The Alliance for Automotive Innovation stated that the previous requirements effectively required a switchover to electric vehicles that was out of step with market realities and customer demand.
Environmental organizations have criticized the rollback for its potential impact on air quality and climate goals. Katherine García, director of the Clean Transportation for All project at the Sierra Club, warned that the changes will lead to more gas burned, spending more at the pump, and dirtier air in our communities.
Projections indicate that the new rule could increase gas demand by 4.6% through 2035 and lead to higher annual carbon dioxide emissions. Sue Helper, an auto industry expert at Case Western Reserve University, added that while the move may benefit truck and SUV manufacturers in the short term, it risks making U.S. vehicles less competitive globally by slowing efficiency progress.
Regulatory Integrity and Future Oversight
NHTSA Administrator Jonathan Morrison defended the rule as a balancing act between affordability and energy goals. This rule restores integrity to the national fuel economy program, balancing vehicle affordability and energy conservation goals while improving safety on our roadways,
Morrison stated. The administration contends that by making new vehicles more affordable, more families will purchase newer, safer cars, preventing an estimated 300,000 serious injuries and saving 1,900 lives.
As the regulation takes effect, the outlook for electric vehicle adoption remains uncertain.
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