The U.S. Department of Transportation has finalized a major rollback of federal fuel-economy standards, which Secretary Sean Duffy says will give automakers more flexibility and make vehicles more affordable.
- The administration says the new rules will:
- Reduce the average new-vehicle cost by $1,300.
- Save Americans an estimated $138 billion over five years.
- Project fleetwide fuel economy of 34.9 mpg by 2031, up from 30.1 mpg in 2024.
Potentially prevent more than 300,000 serious injuries and 1,900 deaths by encouraging purchases of newer vehicles.
The rule also changes vehicle classifications, eliminating incentives for automakers to classify certain crossovers as light trucks, and ends CAFE credit trading beginning in 2028. The administration argues these changes will reduce regulatory costs and eliminate what it calls a “backdoor EV mandate.”
