Trump planning reset of fuel economy standards
By: Swapna Venugopal Ramswamy
USA today
..... President Donald Trump announced at the White House on December 3 [2025] that he is rolling back fuel-efficiency standards for cars and trucks set by the Biden administration, a move that makes it easier for automakers to sell gas-powered vehicles.
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Signed into law in 1975, the Corporate Average Fuel economy standards regulate how far vehicles must travel on a gallon of fuel. The National Highway Traffic Safety Administration is expected to propose reducing the fuel economy requirements form model years 2022 to 2031, a move that will save Americans $109 billion, a White House official told USA Today.
..... The Biden administration in 2022 announced new standard which required an industry-wide fleet average of approximately 49 miles per gallon for passenger cars and light trucks in model year 2026.
..... The new standards, the Department of Transportation said in 2022, would increase fuel efficiency 8% annually for model years 2024-2025 and 10% annually for model year 2026. That would also have increased the estimated fleet-wide average by nearly 10 miles per gallon for model year 2026, compared with model year 2021.
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In June 2024, the Biden administration announced that fuel economy will increase 2% per year for model years 2027-2031 for passenger cars, while light trucks will increase 2% per year of model years 2029-2031. The increase would have brought fuel economy up to approximately 50.4 miles per gallon by model year 2031. that would have saved passenger car and light truck owners more than $600 in fuel over the lifetime of their vehicles, the Biden Administration said.
..... The fuel economy requirements for 2022-2031 model-year vehicles are expected to be significantly reduced - though it was unclear how much it would be reduced by. Earlier this year, [2025] Trump signed legislation that ended fuel economy penalties for automakers, and NHTSA said they faced no fines dating to the 2022 model year.
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Trump has taken a series of steps to make it easier for automakers to sell gasoline-powered vehicles and disincentivize EV production, including rescinding EV tax cerdits and barring Californai from banning hte sale of traditional gas-powered vehicles after 2035. in June, [2025] Trump signed three Congressional Review Act resolutions that rescinded California;s electric vehicles sales mandate and diesel engine rules.
..... Ford CEO Jim Farley praised Trump in a statement ahead of the event for :aligning fuel economy standards with market realities. We can make real progress on carbon emissions and energy efficiency while still giving customers choice and affordability."
..... General Motors CEO Mary Barra noted at an event on December 2 [2025] that before Congress blocked California's zero-emission vehicle rules in June, [2025] the auto sector was facing requirements in some states that 35% of new vehicles sold in 2026 must be EVs.
..... "We were going to have to start shutting down plants because we weren't gong t be able to build and sell those vehicles," Barra said
..... Contributing: Reuters