Overview
- National Highway Traffic Safety Administration proposes slowing annual fuel-economy increases to roughly 0.25–0.5%, a steep reduction from Biden-era plans for 8–10% gains toward 50.4 mpg.
- The plan would reclassify many car-based SUVs as passenger vehicles and eliminate CAFE credit trading by 2028.
- The White House frames the rollback as an affordability measure, projecting $109 billion in consumer savings over five years and about $1,000 off the average new-car price.
- Industry leaders such as Ford CEO Jim Farley welcomed the shift as better aligned with market demand, while environmental groups and California Gov. Gavin Newsom criticized the proposal.
- The move follows earlier actions that set CAFE noncompliance penalties to $0, repealed the $7,500 federal EV tax credit, and blocked California from enforcing separate emissions standards.