US Finalizes Lower Fuel Economy Standards, Easing Path for Gas-Powered Vehicles

The Trump administration on Monday finalized new, lower vehicle fuel economy standards, reversing a Biden-era push that had pressed automakers to build more fuel-efficient and electric vehicles.

The Transportation Department set a fleetwide average of 34.9 miles per gallon by 2031, down from the 50.4 mpg target established under Democratic former President Joe Biden. The department's own estimates indicate the revised standards will reduce the cost of new vehicles but lead to higher fuel consumption and carbon dioxide emissions over the coming decades.

The move marks the latest step by the administration to make it easier for automakers to sell gasoline-powered vehicles. Under Biden, the government had finalized rules in 2024 requiring annual fuel efficiency increases of 8% for model years 2024 and 2025, 10% for 2026, and 2% annually from 2027 through 2031, as part of an effort to accelerate electric vehicle adoption.

The Alliance for Automotive Innovation, a trade group representing General Motors, Toyota, Volkswagen, Hyundai, Ford and other major automakers, welcomed the decision, saying the government "made the right call to better align fuel economy standards with the law and current market conditions." The group argued that the Biden rules "effectively required a switchover to electric vehicles that was out of step with market realities and customer demand."

The Sierra Club, an environmental organization, criticized the rollback and said it would fight the change. "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," the group said.

The new standards come as US drivers have faced sharply higher fuel prices since the start of the US-Israeli war with Iran at the end of February.