Department of TransportationFeaturedTrump fuel economy rules

Trump Finalizes New Fuel Economy Rules, Projects $1,300 Drop in New-Car Costs

The Trump Administration put the brakes on Biden-era fuel rules Monday, finalizing a major rollback it says will cut car prices and give automakers more room to build the gas-powered vehicles Americans still buy.

The new Transportation Department rule sets an estimated fleetwide average of 34.9 miles per gallon by 2031 — up from 30.1 mpg in 2024, but far below the Biden-era target.

Transportation Secretary Sean Duffy gave the rewrite a simple name: “Freedom Means Affordable Cars.”

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DOT says the rule could knock about $1,300 off the price of a new vehicle and save Americans $138 billion over five years. Those are administration estimates, but Duffy wasted no time selling the move.

“MAJOR WIN for American auto workers & buyers!” he wrote on X, declaring an end to what he called Biden’s “CRAZY EV mandates.”

The rule also scraps the Corporate Average Fuel Economy credit-trading system starting with model year 2028 and changes how vehicles are classified beginning in 2030.

The goal: stop using federal fuel rules to push automakers toward cars consumers may not want.

That argument has plenty of backing in Detroit. Pickups, SUVs, vans and crossovers still dominate U.S. sales, while fully electric vehicles made up just 7.9% of new light-duty vehicle sales in the second quarter of 2026.

Hybrids did better. Gas-powered vehicles still ruled the road.

There is a tradeoff. Looser fuel-economy rules mean automakers face lower compliance costs, but vehicles are expected to burn more fuel and produce more emissions than under Biden’s tougher standards.

Environmental groups are already attacking the rollback, arguing that any savings at the dealership could get eaten up later at the pump.

The Trump Administration is making the opposite bet: that buyers care more about lower sticker prices, more vehicle choice, and fewer federal mandates than Washington forcing a faster EV transition.

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