Trump Administration Weakens Fuel Efficiency Standards, Targets 34.9 MPG by 2031

The Trump administration is rolling back federal fuel-economy standards for new vehicles, requiring automakers to improve efficiency by up to 1% annually, aiming for an average of 34.9 miles per gallon by 2031.

This new target is lower than the Biden-era goal of 50.4 mpg. Transportation Secretary Sean Duffy announced the rule, which was finalized last week with President Donald Trump's signoff. The administration claims the change will cut the price of a new vehicle by about $1,300. President Trump stated on September 26 that the new standards would take the waste out of building cars in America and mean "LOWER PRICES, saving families thousands on a new, beautiful, and safe car."

However, the administration also estimates drivers could pay about $1,600 more in fuel costs over the life of a vehicle. Former Transportation Secretary Pete Buttigieg criticized the rollback, saying it could leave drivers paying more over time and put U.S. automakers at a global disadvantage. Buttigieg argued the $1,600 fuel cost estimate does not fully account for higher gas prices or tariffs.

He also warned that weaker standards could slow U.S. auto innovation as China expands its electric vehicle industry. Automakers broadly welcomed the rollback, stating the previous standards were out of step with consumer demand. Environmental advocates criticized the rule when it was proposed in December 2025. The Biden administration's 2024 regulations aimed to reduce car-based greenhouse gas emissions and spur a transition to electric and hybrid vehicles. The Corporate Average Fuel Economy (CAFE) standards, established by Congress in 1975, dictate fuel economy benchmarks.