Trump administration finalizes rollback of federal fuel economy standards

The Trump administration on Monday finalized a rollback of federal fuel economy standards for new cars and light trucks, a move critics say will raise fuel costs, worsen air pollution and add to climate-warming emissions.

The National Highway Traffic Safety Administration, part of the Department of Transportation, published new Corporate Average Fuel Economy standards. The department estimates they correspond to an industry fleetwide average of about 34.9 miles per gallon for model year 2031 vehicles, compared with roughly 50.4 miles per gallon under the Biden-era standard.

Transportation Secretary Sean Duffy said the change ends an "illegal mandate" that forced automakers to build electric vehicles "that American families didn't want." John Bozella, president and chief executive of the Alliance for Automotive Innovation, called the rule "an appropriate course correction."

Transportation accounts for about 28% of the nation's greenhouse gas emissions, more than electric power generation or industry, according to the Environmental Protection Agency. The rollback comes as the war in Iran has pushed gasoline prices to an average of $4.48 a gallon, according to the American Automobile Association.

Jason Schwartz, regulatory policy director at New York University's Institute for Policy Integrity, said the replaced standards were projected to save consumers $80 billion in fuel costs and avoid more than $125 billion in climate damages. "Households that are already stretched thin will pay the price," he said. Harold Wimmer, president and chief executive of the American Lung Association, said the rule "will create more air pollution, harm health and accelerate climate change."

This brief is based on reporting by Dennis Pillion, published Sept. 28, 2026, in Inside Climate News. Read the original: https://insideclimatenews.org/news/28092026/trump-slashes-fuel-economy-standards/