The Trump Administration released a rule on Monday to roll back Biden-era fuel economy standards, saying that the Biden Administration “previously broke the law by setting standards that went far beyond the requirements mandated by Congress” and arguing that they pushed for electric vehicles that Americans did not want. The announcement, which came from Transportation Secretary Sean Duffy, said that the previous regulations had been costly for automakers. The changes are meant to reduce their costs and encourage manufacturers to expand production in the U.S.
Duffy claimed that, by extension, the rollbacks would make new cars more affordable for Americans. Read More: How Communities Thrive When City Streets Ditch Cars When it was first proposed in December 2025, the rule was divisive, drawing ire from environmental advocates while garnering praise from auto-industry trade groups. The Administration finalized it last week with a signoff from President Donald Trump.
The President commented on the forthcoming rule Sept. 26, saying the new standards would “take the waste out of building cars in America.” “That means LOWER PRICES, saving families thousands on a new, beautiful, and safe car,” he wrote on Truth Social. The claim that the revisions will pass down cost savings to American buyers, however, relies on several factors, including automakers’ pricing decisions, fuel costs, and broader economic conditions. Former President Joe Biden’s regulations were put in place in 2024 to reduce car-based greenhouse gas emissions, decrease dependence on fossil fuels, and spur a transition to electric and hybrid vehicles.
The Trump Administration has claimed that its revisions are more focused on bolstering the auto industry and making safer, newer cars more accessible. The rollback reduces pressure on automakers to improve fuel efficiency or sell more hybrids and electric vehicles to meet fleetwide standards. Two federal agencies have traditionally set rules that shape how much fuel vehicles use and how much pollution they produce.
The Environmental Protection Agency (EPA) regulates vehicle pollution and, until this year’s rollback, also limited vehicle greenhouse gas emissions. The Department of Transportation (DOT) sets fuel economy standards—how far vehicles must travel on a gallon of fuel. The DOT’s Corporate Average Fuel Economy (CAFE) standards apply to the average fuel economy of an automaker’s new cars and light trucks.
They ensure that if an automaker sold an inefficient vehicle, it would also need to sell efficient vehicles to reach the average standard. It is these standards that sit at the center of the latest rollbacks: The Biden Administration projected its standards would bring average fleet fuel economy to approximately 50.4 mpg by model year 2031. The Trump Administration projects 34.9 mpg under its revised standards.
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