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The Trump administration has finalized a major rollback of U.S. fuel economy standards, cutting the 2031 fleetwide target from 50.4 miles per gallon to 34.9 mpg. The change was announced Monday by the Department of Transportation, and it removes the federal pressure on automakers to build electric vehicles as a way to satisfy mileage rules. As of April 26, 2026, the new CAFE standards are official.
Transportation Secretary Sean P. Duffy presented the decision as relief for consumers and a step toward reviving U.S. manufacturing. "This administration is delivering relief to families and reviving the beating heart of American manufacturing," he said. Duffy called the standards "commonsense" and said they would make the American dream affordable again.
NHTSA Administrator Jonathan Morrison said the rule restores integrity to the national fuel economy program. He also argued that lower vehicle prices will let more families buy newer, safer cars.
The Corporate Average Fuel Economy (CAFE) program has been around since 1975, when Congress was trying to reduce America's dependence on foreign oil after the Arab oil embargo. CAFE sets an average mpg target for each automaker's entire fleet sold in the U.S. EVs and hybrids improve that average, which gives automakers room to sell less efficient trucks and SUVs.
In 2024, the Biden administration raised the target to 50.4 mpg by 2031. Environmental advocates said that target would speed the transition to cleaner vehicles. The Trump administration, by contrast, has long argued that the target would effectively force automakers to sell huge numbers of EVs, a policy it calls an "EV mandate."
To be clear, the 2024 rule did not explicitly require EV sales. It was performance-based, meaning automakers could choose their own technology path. But in practice, hitting 50.4 mpg would have been very difficult without a major shift toward electrification.
The new rule drops the target to 34.9 mpg for 2031. That, NHTSA says, is more realistic and less burdensome.
The rule also changes how the government sorts light trucks and passenger cars, starting in 2030. Under the current framework, automakers can add equipment or tweak designs to push a vehicle into the "light truck" category, which has less strict fuel economy requirements. That has discouraged smaller hatchbacks, wagons, and similar models.
DOT says this reclassification will remove the incentive to build vehicles for regulatory reasons. Instead, manufacturers will be able to design around what consumers actually want.
The agency estimates the new approach could cut the average price of a new vehicle by up to $1,300 and save Americans $138 billion over five years. The average new vehicle sold for $49,855 in July, according to Kelley Blue Book.
President Donald Trump wrote on social media over the weekend that the standards will "take the waste out of building cars in America" and lead to lower prices.
Automakers have been asking for relief from the previous rules, and many see the new standard as more workable. The Alliance for Automotive Innovation, which represents major manufacturers, said it is still reviewing the final rule but called NHTSA's action "the right call."
"The standards finalized under the previous administration effectively required a switchover to electric vehicles that was out of step with market realities and customer demand," CEO John Bozzella said in a statement to ABC News.
He added that the industry needs "long-term regulatory stability" with balanced, durable and achievable standards that continue to reduce emissions. Bozzella warned that without stability, the U.S. auto industry could lose competitiveness globally.
The rollback drew immediate criticism from environmental and clean energy groups. Gina McCarthy, former EPA administrator and now chair of America Is All, said the move throws away 50 years of progress.
"For fifty years, fuel economy standards have saved Americans money and cut pollution at the same time," she said. McCarthy called efficient vehicles good for consumers, jobs, and public health. She insisted that governors, mayors, and businesses will keep pushing forward "with or without Washington."
The Sierra Club also condemned the rule. Katherine García, director of the group's Clean Transportation for All campaign, said less efficient vehicles mean more gas burned, higher costs at the pump, and dirtier air.
"The Sierra Club will fight this senseless rollback every step of the way," García said.
If NHTSA's price estimate is right, buyers could see lower sticker prices, especially on smaller vehicles. But lower fuel economy targets also mean higher fuel costs over the life of the car. A fleet average of 34.9 mpg burns considerably more gasoline than a fleet average of 50.4 mpg. At current pump prices, that could translate into hundreds of dollars in extra fuel costs each year for many drivers.
The White House argues that lower upfront prices are more important for affordability. Environmental groups counter that the long-term cost of owning a car will rise, and that increased fuel use will cause more pollution.
The new federal rule does not prohibit automakers from building EVs. It simply removes the strongest federal incentive to build them. Industry analysts say the change could accelerate a slowdown in EV investment that is already underway, as some automakers have pushed back production schedules and scaled back battery plant plans.
State regulations are still a wild card. California and several other states have adopted their own zero-emission vehicle requirements, and they are unlikely to simply follow the federal government's lead. That means automakers may build more EVs for California and other states while relying on trucks and SUVs for the rest of the country.
Legal challenges are likely. Environmental groups and public health organizations have a track record of suing over major fuel economy rollbacks, and this rule is a larger target than most. Expect arguments that NHTSA failed to follow its statutory duty to conserve energy and protect public safety.
There is also the climate context. EPA data shows the transportation sector is the largest source of direct greenhouse gas emissions in the U.S.; cars and trucks produce more than three-quarters of that. Weakening fuel economy standards makes it harder to reduce those emissions, even if it helps some families afford a car sooner.
The rule is a significant shift away from the previous administration's climate push. But its actual effect on the market, the environment, and household budgets will take years to measure.
