Macro EconomyMedium•28 September 2026•
1 min read
Trump Administration Rolls Back Vehicle Fuel-Economy Standards Through 2031
Key Facts
1The Trump administration reduced the required average fuel-economy standards for vehicles to 34.5 miles per gallon by model year 2031.
2The new rules replace the previous Biden administration target of 50.4 miles per gallon.
The Trump administration reduced the required average fuel-economy standards for vehicles to 34.5 miles per gallon by model year 2031. The Wall Street Journal reported that these new rules replace the previous Biden administration target of 50.4 miles per gallon.
The move is part of a broader deregulatory agenda aimed at reducing compliance costs for the automotive industry. While the policy lowers expenses for traditional internal combustion engine manufacturers, it may impact the pace of the electric vehicle transition in the United States.