Administration finalizes rollback of fuel-economy rules to about 35 mpg

WASHINGTON, D.C. — The Transportation Department on Monday finalized new corporate average fuel economy standards that sharply lower what automakers must achieve across their fleets over the next several years.

The rule, which the administration calls "Freedom Means Affordable Cars," sets a target of about 34.9 miles per gallon by model year 2031, up modestly from roughly 30 mpg in 2024. The previous administration had set a goal of about 50.4 mpg for the same year. The 892-page rule covers model years 2022 through 2031, though its practical effect falls mostly on vehicles built from 2028 on.

The case for the change

Transportation Secretary Sean Duffy said the old standards effectively forced carmakers to build more electric vehicles than buyers wanted. The department estimates the new rule will cut the average cost of a new vehicle by about $1,300 and save consumers $138 billion over five years. The Alliance for Automotive Innovation, which represents most major automakers, called the decision the right call.

The case against

Environmental groups say drivers will end up paying more at the pump. The Environmental Defense Fund estimates the average American will spend about $1,600 more on gasoline, and the Union of Concerned Scientists described the rule as a giveaway to automakers. Legal challenges are widely expected.

The debate lands at a sensitive moment: gasoline prices are elevated because of the conflict in the Gulf, and fuel costs are a leading concern in consumer surveys.