Federal MPG Mandates Are About To Get Rolled Back
The Biden-era push for stricter fuel economy regulations may be short-lived.
New U.S. Transportation Secretary Sean Duffy has ordered a review of existing fuel economy standards, a precursor to rolling back the ambitious targets set under the previous administration.
Duffy’s directive to the National Highway Traffic Safety Administration (NHTSA) targets fuel economy mandates requiring automakers’ light vehicle fleets to average 50.4 mpg by 2031. The rules, introduced last year under President Biden, were designed in an attempt to curb greenhouse gas emissions and accelerate the transition to electric vehicles.
The New York Times obtained a copy of the directive. In the document, Duffy argues that “artificially high fuel economy standards impose large costs that render many new vehicle models unaffordable for the average American family and small business owner.” The new transportation secretary also cited concerns about the stability of the U.S. power grid and dependence on foreign-sourced materials for EV batteries.
This move falls in step with Trump’s push to reverse numerous pro-EV policies, including eliminating the $7,500 federal EV tax credit. The tax incentives, introduced under the Inflation Reduction Act, played a key role in accelerating EV adoption, which grew 7% in 2024.
Without the credits, automakers fear consumer interest in EVs could drop, jeopardizing their multi-billion-dollar investments in electrification.
While some automakers remain committed to an EV transition, others are already adjusting course. In recent weeks Stellantis has announced large strategy swings. Alfa Romeo abandoned its plan to go fully electric by 2027, opting instead for a “multi-energy” strategy that includes hybrid and combustion models, while Ram and Chrysler both walked back EV programs.
If the Trump administration follows through on scaling back fuel economy targets, automakers could gain more flexibility in balancing combustion, hybrid, and electric vehicle production—which at the end of the day, will provide more choices for the buying public.
Become an AutoGuide insider. Get the latest from the automotive world first by subscribing to our newsletter here.
An experienced automotive storyteller and accomplished photographer known for engaging and insightful content. Michael also brings a wealth of technical knowledge—he was part of the Ford GT program at Multimatic, oversaw a fleet of Audi TCR race cars, ziptied Lamborghini Super Trofeo cars back together, been over the wall during the Rolex 24, and worked in the intense world of IndyCar.
More by Michael Accardi
Comments
Join the conversation
I have a Ford lighting and it will be worth nothing in 5 years, eclectic cars are not good. They have been created by a bunch of nogoodniks. And The Fabulous Mooolah.When your battery is screwed in your electric vehicle you also will be screwed. HARD.
These clowns 🤡 keep deleting my conversations 😒 very bad. Communists I think! Butt ugly Communists
I would not personally buy an EV, but I know a lot of people on the west coast who are served well by them, for a large city environment with a relatively warm climate they probably make sense.
I could almost get along with a Hybrid for my northern city driving, but I would much rather have a small 4 cylinder gas engined vehicle. It just reduces the challenges and expense of an EV.
Unfortunately Ford and GM have been on the Gold plated Monster truck or nothing bandwagon for so long there's not much choice anymore, and all the imports want to push the very expensive to fix and very unreliable CV transmissions instead of the old bulletproof manuals.
It does make for a difficult choice down the road.