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The Trump administration is preparing to unveil a major rollback of U.S. fuel economy standards, aiming to ease restrictions on automakers and bolster the market for gas-powered vehicles, according to sources cited by Reuters. The National Highway Traffic Safety Administration (NHTSA) is expected to propose significantly reducing fuel economy requirements for model years 2022 through 2031, reversing rules finalized under President Joe Biden. President Donald Trump is set to announce the proposal at a White House event on Wednesday, where executives from the country’s three largest automakers are anticipated to attend.
Earlier this year, Trump signed legislation eliminating fuel economy penalties for automakers, and NHTSA later confirmed that companies would not face fines dating back to the 2022 model year. This move follows a series of actions aimed at promoting traditional internal combustion vehicles, including ending federal EV tax credits and blocking California from enforcing a 2035 ban on gas-powered car sales.
The shift contrasts sharply with the Biden administration’s approach. In June 2024, NHTSA announced plans to raise Corporate Average Fuel Economy (CAFE) standards to roughly 50.4 miles per gallon by 2031, up from 39.1 mpg. The agency projected that stricter standards would cut gasoline consumption by 64 billion gallons and reduce emissions by 659 million metric tons, generating an estimated $35.2 billion in net savings for American drivers. However, the Trump administration argues the Biden-era rules overstepped federal authority by assuming aggressive electric vehicle adoption.
U.S. Transportation Secretary Sean Duffy previously ordered NHTSA to rescind Biden’s fuel economy framework. Automakers like Stellantis and General Motors have faced hundreds of millions of dollars in penalties for failing to meet past fuel economy requirements—costs that could decline under the proposed rollback.
The upcoming announcement is expected to intensify the national debate over EV adoption, emissions policy, and the future direction of the U.S. automotive industry.
