The National Highway Traffic Safety Administration (NHTSA) has finalized a revision to federal fuel economy standards, setting a fleetwide average of 34.5 mpg for the 2031 model year. This new target replaces the previous administration's goal of 50.4 mpg, which automakers had previously labeled as unreachable.
The policy change removes the requirement for annual efficiency gains of up to 10 percent that were planned through 2031. By lowering the fleet average, the administration aims to provide manufacturers with more flexibility to continue producing SUVs and pickup trucks, which currently dominate the US automotive market.
According to NHTSA estimates, the rollback is expected to reduce the average cost of a new vehicle by $930. However, the agency projects that the softer standards will result in the consumption of approximately 100 billion additional gallons of gasoline by 2050, increasing fuel expenditures by $185 billion and raising carbon-dioxide emissions by 5 percent.
Automakers are currently adjusting their compliance strategies for the 2028 and 2029 model years in response to these looser requirements. While the federal rule has been updated, manufacturers must still navigate stricter zero-emission vehicle mandates in California and other states that follow its specific regulatory framework.
