Trump Administration Scales Back Fuel Economy Targets

The Department of Transportation finalized the rule this week, setting a trajectory that requires vehicles to reach an average of roughly 34.9 mpg within five years. Transportation Secretary Sean Duffy defended the pivot, arguing that previous mandates forced automakers to produce electric vehicles that lacked consumer demand. The administration projects the change will save Americans $138 billion over the next five years, asserting it reduces the average new vehicle price by $1,300.

However, independent analysis suggests a different outcome for household budgets. The National Highway Traffic Safety Administration’s own impact report indicates the rollback will lead to the consumption of 122 billion additional gallons of gasoline. Critics note this will drive up lifetime fuel costs by over $1,600 per vehicle, effectively canceling out any initial purchase savings. Dave Cooke of the Union of Concerned Scientists characterized the policy as a handout to oil companies, pointing to the $321 billion in fuel savings generated since 2010 under previous standards. Beyond the financial implications, the decision is expected to result in 659 million metric tons of additional carbon dioxide emissions through 2050, drawing sharp criticism from environmental groups like the NRDC and the Center for Biological Diversity.