The Trump administration has finalized a rule that lowers federal fuel economy requirements for new cars, replacing standards set under President Joe Biden that would have pushed the fleet average to 50.4 miles per gallon by model year 2031. Under the new plan, the target is 34.9 miles per gallon, only modestly above the 30.1-mile-per-gallon figure previously set for model year 2024. The change affects automakers and American car buyers across the US market.
The administration says its plan would reduce the average cost of a new vehicle by $1,300 and save $138 billion over the next five years. Those figures have been disputed. The Biden-era standards that the new rule discards were expected to save $23 billion in fuel costs and to save a car owner more than $600 in gasoline over the lifetime of a vehicle.
Automakers have welcomed the new requirements. Consumer advocacy, health and environmental groups have strongly criticized them. Those groups contend that weaker fuel economy standards will lead Americans to spend more at the pump, in addition to higher healthcare costs and damage from climate change linked to air pollution.
Harold Wimmer, president and CEO of the American Lung Association, said in an emailed statement that fuel economy standards have for decades made new cars, SUVs and pickup trucks more efficient, saving lives and money. He said there is no reason to weaken standards that he described as technologically feasible and directly beneficial to the air people breathe.
The rule marks the end of the Biden-era targets, which the Trump administration has now undone. The dispute centers on how the costs and savings of fuel efficiency are measured, with the administration pointing to lower sticker prices and critics pointing to higher fuel and health costs. The finalized rule governs the fleet average fuel economy that new vehicles sold in the United States must meet in the years ahead.
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