Overview
- NHTSA’s proposal would slow required gains to 0.25–0.5% per year, target a 34.5 mpg fleet average by model year 2031, reclassify some SUVs as passenger vehicles, and end CAFE credit trading by 2028.
- The agency’s economic analysis estimates automakers would save about $35 billion through 2031, with average vehicle purchase prices potentially falling by roughly $930 if savings are passed on.
- NHTSA projects about 100 billion more gallons of fuel consumed through 2050 versus the Biden-era rule, costing up to $185 billion and raising CO2 emissions around 5% relative to the previous standards.
- Public comments are open under docket NHTSA-2025-0491 through Jan. 20, 2026.
- Industry leaders at Ford and other automakers praised the move as an affordability win, while California’s governor and environmental groups warned of higher fuel spending and worse air pollution; Congress previously set CAFE penalties to $0 and ended the $7,500 federal EV tax credit.