OAN Staff Cory Hawkins
11:13 AM – Wednesday, December 3, 2025
President Donald Trump announced the termination and replacement of the Biden administration’s Corporate Average Fuel Economy (CAFE) standards, which had required automakers to achieve an industry-wide fleet average of about 50 miles per gallon for passenger cars and light trucks by model year 2031.
The new proposal resets the standards to a 2022 baseline, mandating only a 0.5% annual increase in efficiency (down from Biden’s 2% per year), resulting in an average of roughly 34.5 mpg through 2031.
This move, which was unveiled at a White House event, is projected to save consumers up to $109 billion over five years by reducing compliance costs for manufacturers, though left-wing environmentalist critics argue it will increase “fuel consumption and [carbon] emissions.”
The Trump White House described the Biden rules as an “unlawful” de facto electric vehicle mandate that raised new car prices by nearly $1,000 on average.
“We are officially terminating Joe Biden’s ridiculously burdensome, horrible, actually, CAFE standards that imposed expensive restrictions,” Trump exclaimed at the White House event announcing the move.
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The President has proposed revising the Corporate Average Fuel Economy (CAFE) standards, which dictate how far vehicles must travel on a single gallon of gasoline. The National Highway Traffic Safety Administration is expected to formally propose lowering the fuel-economy requirements for vehicles manufactured between 2022 and 2031.
Under the Biden administration, the target was set at 50.4 miles per gallon. The rollback would reduce that requirement to roughly 34.5 miles per gallon. A White House official said the change has the potential to save Americans $109 billion.
The revision would also end a credit-trading program that currently allows automakers to pay companies with stronger fuel efficiency — such as Tesla — for credits to meet compliance, a policy the administration describes as one that “artificially propped up the EV industry.”
A White House fact sheet argues that the move will restore standard levels that can actually be met with conventional gasoline and diesel vehicles. It called the targets imposed by the Biden administration “unrealistic” and said they “compelled widespread shifts to EVs” that raised costs for Americans.
“Since EVs are so expensive to build, automakers must sell them at a loss and make up the difference by significantly raising the sticker price of gas cars,” the sheet explains.
Following the announcement, Ford CEO Jim Farley praised Trump, thanking him for “aligning fuel economy standards with market realities.”
“We can make real progress on carbon emissions and energy efficiency while still giving customers choice and affordability,” he stated.
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