Trump to reverse Biden-era fuel standards
Former President Donald Trump is set to announce new fuel economy standards that will reverse the regulations implemented during the Biden administration. The revised rules under the Corporate Average Fuel Economy (CAFE) program aim to ease requirements on automakers, targeting an average of about 50 miles per gallon for 2031 model-year vehicles. The move is expected to save American families $109 billion and make gas-powered cars more affordable, countering the shift toward electric vehicles (EVs) that Biden’s policies encouraged.Major automakers such as Ford, General Motors, and Stellantis support the changes, viewing them as more aligned with market realities and consumer choice.The National Highway Traffic Safety Administration justified the rollback by asserting that the Biden administration exceeded it’s legal authority by including EVs in fuel standards. This announcement is also part of Trump’s broader efforts to address rising vehicle prices and the affordability crisis facing American consumers.
Trump to announce new fuel standards, reversing Biden-era rules
President Donald Trump will announce new fuel economy standards on Wednesday in the Oval Office, a White House official confirmed to the Washington Examiner.
This “reset” of fuel standards under the Corporate Average Fuel Economy program marks a reversal of rules established under former President Joe Biden‘s administration and is expected to save American families $109 billion, according to the White House.
The reversal of Biden-era requirements will force automakers to achieve an average of roughly 50 miles per gallon across 2031 model-year vehicles.
Trump teased the announcement on Tuesday during his final Cabinet meeting of the year, saying, “We’re bringing back the automobile business.”
Executives from Ford, General Motors, and Stellantis will also attend the announcement on Wednesday.
“As America’s largest auto producer, we appreciate President Trump’s leadership in aligning fuel economy standards with market realities,” Ford CEO Jim Farley said. “We can make real progress on carbon emissions and energy efficiency while still giving customers choice and affordability. This is a win for customers and common sense.”
Stellantis CEO Antonio Filosa added, “Stellantis appreciates the Trump administration’s actions to realign the Corporate Average Fuel Economy standards with real-world market conditions as part of its wider vision for a growing U.S. automotive industry. We look forward to working further with NHTSA on environmentally responsible policies that also allow us to offer our customers the freedom to choose the vehicles they want at prices they can afford.”
The National Highway Traffic Safety Administration released its legal rationale for rolling back the Biden-era rules in June, saying the Biden administration overstepped its legal authority by including electric vehicles.
The new fuel economy standards are meant to make it easier for automakers to sell gas-powered cars and limit the shift to EVs. Trump has long derided EVs, given his longtime advocacy of fossil fuels.
In June, Trump signed a measure preventing California from banning the sale of gas-powered vehicles by 2035. He also signed two other resolutions blocking California from curbing tailpipe emissions in some vehicles and smog-forming nitrogen oxide pollution from trucks.
The Trump administration has blamed Biden for imposing standards that have increased the price of new cars. Car prices hit a high of $50,000 in September, a staggering sum for the average American consumer.
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“GM supports the goals of NHTSA’s proposed CAFE rule and its intention to better align fuel economy standards with market realities,” a GM spokesperson said. “We have long advocated for one national standard that upholds customer choice and provides the auto industry long-term stability. As we review the proposal, we remain committed to offering the best and broadest portfolio of electric and gas-powered vehicles on the market.”
The announcement is also part of Trump’s efforts to address a rising affordability crisis that has Americans taking out their anger on the GOP just one year after he won reelection to the White House.
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