Overview
- NHTSA’s proposal would lower the fleetwide standard from about 50.4 mpg to roughly 34.5 mpg by model year 2031 and phase out CAFE credit trading starting in 2028.
- The announcement follows earlier actions that erased CAFE noncompliance penalties and ended the federal EV purchase tax credit under the One Big Beautiful Bill Act.
- The White House argues weaker standards will reduce new-vehicle prices and improve safety, but analysts cited by AP say immediate sticker-price relief is unlikely and fuel costs could rise.
- Automakers welcomed the shift, with Ford’s Jim Farley calling prior rules out of step with demand and GM’s Mary Barra saying Biden-era requirements could have forced cuts to gasoline models or even plant shutdowns.
- Efficiency and environmental advocates, including ACEEE and the Sierra Club, warn the rollback would increase pollution, raise drivers’ fuel expenses, and weaken U.S. competitiveness, while supporters suggest it could even open the door for smaller trucks to return, which remains speculative.