The US Department of Transportation has announced the finalisation of a rule that will reduce the fuel efficiency standards for vehicles, marking what the department describes as one of the largest deregulatory actions of Donald Trump’s second term. This move effectively dismantles the more stringent standards set by the earlier Biden administration.
Reduced Fuel Economy Requirements
The newly established standards aim for a fleet average fuel economy of 34.9 miles per gallon by the model year 2031. This represents a significant decrease from the Biden-era goal, which sought an average of 50.4 miles per gallon. In comparison to the prior 2024 target of 30.1 miles per gallon, the new requirement offers only a slight increase.
Financial Implications & Controversy
According to claims by the Trump administration, the relaxed standards will reduce the average cost of a new vehicle by $1,300, accumulating a total saving of $138 billion over the next five years. However, these projections have faced scepticism from various groups.
Response from Automakers and Advocacy Groups
While automakers have expressed approval of the relaxed rules, consumer advocacy, health, and environmental organisations have voiced strong opposition. They caution that the reduction in fuel economy standards will result in higher fuel expenses for Americans and contribute to increased healthcare costs and environmental damage due to worsened air pollution. The Biden-era standards, now overturned, were predicted to save $23 billion in fuel costs and reduce gasoline spending by over $600 for the average car owner over a vehicle’s lifespan.
Harold Wimmer, President and CEO of the American Lung Association, criticised the rule change, stating that fuel economy standards traditionally help “ensure that new cars, SUVs, and pickup trucks are more efficient,” offering direct benefits to public health and economic savings. He argued that there is no justification for weakening standards that are not only technologically feasible but also crucial for improving air quality.
Reporting based on coverage first published by theverge.com.