Trump administration finalizes fuel economy rule it says will cut new vehicle prices by $1,300
The Transportation Department's final standards replace Biden-era targets and end credit trading between automakers, while an environmental group says drivers will pay more for gasoline.
What we know
- Transportation Secretary Sean Duffy announced final fuel economy standards on Monday that the department projects will lower the average price of a new vehicle by $1,300 and save Americans $138 billion over five years. [2]
- The rule covers passenger cars and light trucks for model years 2022 through 2031 and would raise the fleet average to 34.9 miles per gallon by model year 2031, up from 30.1 in 2024, according to NHTSA estimates. [2]
- NHTSA will end fuel economy credit trading between automakers starting in model year 2028. Credits earned or bought through model year 2027 remain usable. [2]
- The rule takes effect 60 days after publication in the Federal Register, the department said. [2]
- Not yet confirmed: The $138 billion estimate does not include fuel costs, the department said. The department described the $1,300 cost reduction as an upfront figure versus "potential long-term fuel savings." Steve Milloy of the Energy and Environment Legal Institute said the rule will be challenged in court.
The Trump administration finalized new fuel economy standards on Monday, replacing rules set under the Biden administration. Transportation Secretary Sean Duffy announced the rule, according to the Daily Caller. [2]
The Department of Transportation projects the rule will reduce the average price of a new vehicle by $1,300 and save Americans $138 billion over five years. The department told the Daily Caller News Foundation the estimate does not include fuel costs. [2]
The White House said in a post on X that President Donald Trump's and Duffy's actions "will demolish these standards." It described the Biden administration's standards as "radical" and said they would have drastically raised car prices. [3]
The rule covers passenger cars and light trucks for model years 2022 through 2031. The National Highway Traffic Safety Administration (NHTSA) estimates it would raise the fleet average to 34.9 miles per gallon by model year 2031, up from 30.1 in 2024. The Biden-era standards were projected in 2024 to lift the average to 50.4 miles per gallon, according to the Natural Resources Defense Council (NRDC). [2]
The rule also ends credit trading between automakers starting in model year 2028. Credits generated from that year on can only cover shortfalls for the automaker that earned them. From model year 2030, the rule changes how vehicles are classified. The department expects about 70 percent of the fleet to count as passenger cars and 30 percent as light trucks, reversing the current split. [2]
John Bozzella, president and CEO of the Alliance for Automotive Innovation, which represents automakers including Ford, General Motors and Stellantis, said NHTSA "made the right call to better align fuel economy standards with the law and current market conditions." [2]
The NRDC, an environmental group, argued that the new target falls below the fuel economy automakers have already achieved on average and will leave drivers spending more on gasoline. Steve Milloy, a senior fellow at the Energy and Environment Legal Institute, said the rule will be challenged in court. [2]
RECEIPTS · 3 SOURCES
- 1POST ON X · @PressSec (White House Press Office)Trump Admin Kills Biden’s Fuel Economy Rules, Says New Cars Will Cost $1,300 Less https://t.co/D4BbqWf3pXOpen source ↗ Archived copy
- 2REPORT · dailycaller.comdailycaller.comOpen source ↗ Archived copy
- 3POST ON X · @WhiteHouse (The White House)The Biden Admin pushed radical fuel economy standards and electric vehicle mandates that would have drastically raised car prices. PresidentOpen source ↗ Archived copy