[REVISION HISTORY]

US vehicle fuel economy standards reduction proposal

Updated 19 times since CLSTR started tracking revisions of this situation.

What changed

2026-10-05 19:40 UTC → 2026-10-07 07:31 UTC · added ~~removed~~

The US administration has moved forward with a significant reduction in federal vehicle fuel economy and consumption standards, reversing previous regulatory frameworks. Under the proposed SAFE III regulation covering model years 2022 through 2031, the administration aims to lower the fleetwide average target to 34.5 miles per gallon by 2031, down from a previous target of 50.4 miles per gallon. President Donald Trump has approved these new standards, characterizing previous policies as an “EV mandate” that sought to have approximately 67 percent of new light-duty and medium-duty vehicle sales be electric by 2032. By late September 2026, the Department of Transportation (DOT) and the National Highway Traffic Safety Administration (NHTSA) finalized these requirements. The finalized rules set a theoretical average fuel consumption target of 34.9 miles per gallon for cars and light trucks by ~~2031, up from 30.1 mpg in 2024. Annual increases are set at 0.9% for passenger cars and 0.51% for light trucks through 2029, rising to 1% for both categories by~~ 2031. Transportation Secretary Sean Duffy announced the ~~finalized~~ rule, titled “Freedom Means Affordable Cars,” stating it aims to provide more affordable vehicle options for American families. The DOT projects these changes will reduce the average price of a new vehicle by $1,300 and save consumers $138 billion over five years. Following the finalization of the rules, the administration faces expanding legal challenges. A coalition of 26 states, led by California Attorney General Rob Bonta, along with environmental organizations ~~including~~ such as the Sierra Club, ~~Public Citizen, and the Environmental Defense Fund, have~~ has filed lawsuits. In October 2026, New Mexico Attorney General Raúl Torrez joined the coalition to challenge the decision. Plaintiffs argue the rollback will increase gasoline ~~consumption, potentially raising gas prices~~ consumption—with NHTSA analysis suggesting an increase of approximately 120 billion gallons by ~~76 cents per gallon, and exacerbate climate change, specifically alleging that~~ 2050—and allege the NHTSA ~~failed its mandate~~ improperly excluded electric vehicles from calculations to ~~set standards at~~ weaken the ~~“maximum feasible” level.~~ standards.

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