What changed and why it matters
The administration finalized a rule that eases the path for selling gas-powered vehicles, reversing a push under Democratic former President Joe Biden for more fuel-efficient lineups. According to the Transportation Department, the goal is a nationwide fleet average of 34.9 miles per gallon by 2031. That compares with the previous target of 50.4 mpg by 2031. Officials acknowledged the tradeoff: lower purchase prices on one side, higher fuel use and more carbon emissions over the long run on the other.
How the Biden-era rules stacked up
In 2024, Biden's team completed standards aimed at nudging automakers toward more electric vehicles to meet rising efficiency requirements. For passenger cars, regulators set the yearly gains at 8% for the 2024 and 2025 model years, jumping to 10% in 2026, then tapering to 2% a year from 2027 through 2031.
Who's applauding and who isn't
Backing the move was the Alliance for Automotive Innovation - a group that counts General Motors, Toyota, Volkswagen, Hyundai, Ford, and other large automakers among its members - which said the government "made the right call to better align fuel economy standards with the law and current market conditions." The group argued the prior rules "effectively required a switchover to electric vehicles that was out of step with market realities and customer demand."
Environmental advocates promised a fight. The Sierra Club said it will challenge President Donald Trump's rollback: "Americans need relief from high costs, but instead Trump is giving automakers a free pass on pollution and handing families the bill - at the pump and with their health," it said.
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What it means for your wallet
Gas costs are already a sore spot. Since the U.S.-Israeli war with Iran began at the end of February, US drivers have been contending with sharply elevated fuel prices. Looser mileage rules mean vehicles consume more fuel over time, which can add up if prices stay elevated.
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