Trump proposes CAFE rollback to 34.5 mpg through 2031; GM, Stellantis back plan
The Trump administration proposed rolling back light‑duty CAFE standards to roughly 34.5 mpg through model year 2031—reverting to a 2022 baseline and increasing fuel‑economy requirements by about 0.5% per year versus roughly 2% under the Biden rule (which projected near‑50 mpg targets)—and the DOT/NHTSA plan was unveiled at the White House and sent into formal rulemaking and public comment. General Motors and Stellantis (and Ford’s CEO praised the move) backed the alignment as reflecting market realities and a single national standard, while environmental groups warned the rollback would raise U.S. oil use, emissions and weaken EV policy.
📌 Key Facts
- President Trump is scheduled to announce the rollback at the White House at 2:30 p.m. EST; the administration unveiled the proposal at a White House event and says it will go through formal rulemaking and a public comment period before finalization.
- The DOT/NHTSA proposal would set the light‑duty industry average at roughly 34.5 mpg through model year 2031 (versus about 50 mpg under the Biden‑era rule), reverting to a 2022 baseline and increasing fuel‑economy requirements by about 0.5% annually (compared with roughly 2% annually under the prior rule).
- Transportation Secretary Sean Duffy initiated the CAFE review, arguing high compliance costs and vehicle affordability concerns as reasons for loosening standards.
- Major automakers publicly welcomed the move: General Motors and Stellantis issued statements backing alignment of standards with market realities and a single national standard; Ford CEO Jim Farley called the rollback “a win for customers and common sense,” and Stellantis CEO Antonio Filosa praised the realignment.
- Environmental groups strongly criticized the rollback: Dan Becker of the Center for Biological Diversity said it would increase oil demand, raise pump prices, worsen global warming, and weaken U.S. competitiveness.
- The rollback is part of a broader rollback of EV and emissions policies: the administration has relaxed tailpipe rules, repealed CAFE noncompliance fines (via the One Big Beautiful Bill Act), ended the $7,500 federal EV consumer credit, and Congress has eliminated the federal EV purchase tax credit, advanced the phaseout of the EV charger installation credit to June 2026, the Senate voted to undo California’s ZEV waiver, and the administration temporarily delayed the federally funded high‑speed charger network.
- As context for the policy change, NHTSA’s June 2024 rule had projected about $23 billion in consumer fuel savings and was intended to accelerate EV production, a projected benefit the rollback would reduce or undo.
📊 Analysis & Commentary (1)
A bolder vision for American energy
"The piece criticizes the administration’s proposed rollback of CAFE standards as a narrow, lobby‑driven move and calls instead for a broader, bolder American energy strategy that pairs standards with investments in infrastructure, advanced technologies, and targeted consumer support."
📰 Sources (4)
Trump administration rolls back fuel economy standards
New information:
- Proposal specifics: revert to a 2022 baseline and increase fuel economy requirements by 0.5% annually (vs. prior 2% per year under Biden-era rules).
- Administration previously eliminated CAFE noncompliance fines via the One Big Beautiful Bill Act, further weakening enforcement.
- DOT confirms the proposal now enters a public comment period before finalization.
- Contextual policy changes noted: Congress eliminated the federal EV purchase tax credit and advanced the phaseout of the EV charger installation credit to June 2026; the Senate voted to undo California’s ZEV waiver; the administration temporarily delayed the federally funded high-speed charger network.
Trump moves to roll back fuel economy standards set under Biden
New information:
- DOT/NHTSA proposal sets the light‑duty industry average at roughly 34.5 mpg through model year 2031, versus ~50 mpg under the Biden-era rule.
- Proposal was unveiled at a White House event on Wednesday and will go through formal rulemaking.
- Transportation Secretary Sean Duffy initiated the CAFE review in January, citing high compliance costs and affordability concerns.
- General Motors and Stellantis issued statements supporting alignment of fuel economy standards with market realities and a single national standard.
- Environmental group Center for Biological Diversity criticized the rollback as increasing U.S. oil use and weakening U.S. competitiveness.
- Article notes NHTSA’s June 2024 rule projected $23 billion in consumer fuel savings and was intended to push EV production.
WATCH LIVE: Trump expected to roll back fuel economy standards
New information:
- Trump is scheduled to announce the rollback at 2:30 p.m. EST at the White House.
- Proposal would significantly reduce fuel economy requirements through the 2031 model year.
- Ford CEO Jim Farley called the rollback “a win for customers and common sense,” praising alignment with market realities.
- Stellantis CEO Antonio Filosa praised the administration for “realign[ing]” the standards.
- Environmental reaction: Dan Becker of the Center for Biological Diversity criticized the move as worsening oil demand, pump prices, and global warming.
- Background context: the administration has already relaxed tailpipe rules, repealed fines for missing mileage targets, and ended the $7,500 federal EV consumer credit.