Despite rising gas prices, President Trump's administration is moving to roll back federal fuel economy rules that could make new cars less fuel-efficient but with a more affordable sticker price.
The U.S. Department of Transportation said in a Sept. 28 press release that it is moving to lower the required fleetwide average fuel economy for cars that is set by regulators from a current requirement of more than 50 miles-per-gallon by 2031 to just under 35 miles-per-gallon.
The fuel economy rollback, which has been dubbed “Freedom Means Affordable Cars” by the Trump administration, comes as the average price of gas in the U.S. reached $4.47 on Monday, Sept. 28, according to AAA. That's up from an average of $4.08 one month ago on August 28, and
$3.13 one year ago on Sept. 28, 2025.
Trump administration officials said lowering the fuel economy requirements for carmakers would make cars cheaper in the long run by an average of about $1,300.
“Thanks to President Trump’s leadership, we have finally ended the illegal mandate that forced automakers to produce more expensive electric vehicles that American families didn’t want," U.S. Transportation Secretary Sean Duffy said in a statement that blame for the higher fuel economy rules on former President Joe Biden's administration.
“With our commonsense standards in place, we are making the American dream affordable again, putting safer cars on the road, and investing in the American autoworker,” Duffy continued.
With that in mind, the USA TODAY Cars team took a look at what the proposed fuel economy rollback will mean for car shoppers and how the proposal is being received by industry observers and environmental groups.
What does reducing federal fuel economy rules mean for car buyers?
The U.S. Transportation Department noted the plan to weaken fuel economy requirements for carmakers will "give automakers the flexibility to manufacturer cars the public wants to buy" and "save the American people $138 billion over the next five years," in addition to the projected sticker price savings.
Last month, the average price of a new vehicle in the U.S. soared to record levels, near $50,000.
The agency also said that making cars cheaper would result in Americans buying new models that have more safety features, which would benefit drivers by reducing the number of crashes and fatalities that occur on U.S. roads.
“This rule restores integrity to the national fuel economy program, balancing vehicle affordability and energy conservation goals while improving safety on our roadways,” NHTSA Administrator Jonathan Morrison said in a statement.
“Newer cars are safer cars," Morrison continued. "By reducing vehicle prices, more American families will be able to afford newer vehicles, and sensible standards allow automakers more freedom to design and produce vehicles consumers actually want."
What are people saying about Trump's move to lower federal rule economy rules?
Critics of the Trump administration's proposal to lower federal economy rules say doing so would make cars less efficient and weaken air quality in the U.S.
Sierra Club Clean Transportation for All Director Katherine García said in a statement that the Trump administration's proposed fuel economy rollback "families already cannot afford the basics, and now Donald Trump wants to make driving more expensive too."
"Less fuel-efficient cars mean more gas burned, spending more at the pump, and dirtier air in our communities," she said.
Kathy Harris, director for clean vehicles at the Natural Resources Defense Council agreed, saying in a statement “with Americans struggling to afford gasoline that is more than $4 a gallon, the Trump administration is going to force them to pay more at the pump.
"Oil companies will get a windfall from gutting the fuel economy standards, but the rest of us are going to be handing over more of our hard-earned paychecks to fill up the tank," she said.
The Alliance for Automotive Innovation, which lobbies in Washington for most major carmakers, said it is “still reviewing the final rule," but believes "NHTSA made the right call to better align fuel economy standards with the law and current market conditions."
“The standards finalized under the previous administration effectively required a switchover to electric vehicles that was out of step with market realities and customer demand," John Bozzella, president and CEO of the Alliance for Automotive Innovation, said in a statement. "Today’s final rule is an appropriate course correction."
Keith Laing is an automotive reporter on the National Trending Desk at USA TODAY. Contact Keith at klaing@usatodayco.com.
This article originally appeared on USA TODAY: Trump says lower MPG rules will cut car prices by $1,300
