Overview

• The law signed by President Trump ends CAFE penalties for any unmet fuel economy targets from the 2022 through 2024 model years.
• In a letter this week, the National Highway Traffic Safety Administration told automakers it will not levy penalties and will reconsider future efficiency rules.
• The Alliance for Automotive Innovation and major manufacturers say the change will save the industry about $200 million and lower compliance costs.
• Conservation groups warn the rollback rewards high-emission vehicles and burdens taxpayers, saying it undermines long-standing climate protections.
• The move follows a series of Republican-led actions reversing Biden-era emissions standards and electric vehicle incentives in this year’s tax and budget legislation.