The White House announced this week it intends to reset "the Biden Administration's costly and unlawful Corporate Average Fuel Economy (CAFE) standards," reshaping the regulatory framework that governs fuel efficiency standards for the nation's light-duty vehicles.
The changes to these standards are likely to reach light commercial trucks and vans, alongside separate initiatives to weaken rules for heavier commercial vehicles. No specifics have been announced at this time.
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Furthermore, the White House fact sheet says it intends to set "realistic, congressionally mandated" levels based largely on gas- and diesel-vehicle performance, replacing the more aggressive goals planned for the early 2030s.
The President said prior fuel economy standards exceeded legal limits by relying on EV credits and credit trading. The shift aligns with a June 2025 NHTSA interpretation requiring CAFE targets to reflect only internal-combustion vehicle capability. According to the White House, the update keeps the program within Congress’s original statutory framework.
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The administration estimates that revising the standards will spare consumers about $109 billion over five years by avoiding roughly $1,000 in added costs per new vehicle. It also says the shift could improve safety by speeding the adoption of newer and safer vehicles, thus reducing injuries and deaths through 2050.
The new framework is designed to give automakers greater leeway in balancing gas, diesel, and hybrid vehicle production. Industry groups say earlier targets were costly to meet, but environmental and health advocates warn the changes could increase fuel consumption and emissions over time.
The administration is set to initiate a formal rulemaking process guided by the reset framework, which will involve releasing a proposed rule and inviting public comments. After considering feedback and completing regulatory analyses, agencies will establish the final standards for upcoming model years, with updated fuel-economy requirements expected to be announced in 2026. In the interim, federal officials have stated that the CAFE program will continue to operate under the June 2025 interpretive guidance.
