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U.S. Sets 34.5 MPG Proposal by 2031 as Officials Tout Station Wagon Comeback

Agency projections show the weaker target raises fuel use, costs, emissions.

Car traffic is seen during rush hour in downtown San Francisco, California, U.S., July 29, 2025. REUTERS/Carlos Barria/File Photo

Overview

  • NHTSA proposed scaling back fuel economy requirements for model years 2022–2031 to a 34.5 mpg fleet average by 2031, down from 50.4 mpg under the prior rule.
  • The agency estimates the change would lower average up-front vehicle prices by about $930 per vehicle.
  • NHTSA projects roughly 100 billion additional gallons of fuel consumed through 2050, up to $185 billion in extra fuel spending, and about a 5% increase in carbon dioxide emissions.
  • Transportation Secretary Sean Duffy said looser rules could broaden consumer choices and potentially bring back station wagons, and NHTSA’s administrator raised the wagon topic with automakers this week.
  • Earlier this year Congress ended fuel-economy penalties for automakers, and NHTSA said no fines apply dating back to the 2022 model year.