President Trump & Transportation Secretary Sean P. Duffy Unveil New “Freedom Means Affordable Cars” Initiative to Reset Fuel Economy Standards
Proposal will save the American people $109 billion, replace the Biden-Buttigieg illegal EV mandate, promote consumer choice, and enhance safety
WASHINGTON, D.C. – U.S. Department of Transportation Secretary Sean P. Duffy alongside President Donald J. Trump in the Oval Office today unveiled the Administration’s new “Freedom Means Affordable Cars” proposal to reset the National Highway Traffic Safety Administration (NHTSA)’s corporate average fuel economy (CAFE) standards. The Biden-Buttigieg administration broke the law by setting standards that went far beyond the requirements mandated by Congress – all to artificially juice supply for electric vehicles that American consumers didn’t ask for.
The Trump Administration’s new standards will save American families from bearing a hidden cost-of-living increase in auto prices because of the Biden-Buttigieg illegal rule. They will also revive the beating heart of American manufacturing and unshackle the nation’s automotive industry to produce safer, more affordable cars that American families want to buy.
The “Freedom Means Affordable Cars” proposal is projected to save the American people $109 billion over the next five years and save families $1,000 on the average cost of a new vehicle. By helping more Americans buy newer, safer vehicles, NHTSA also estimates more than 1,500 lives would be saved and almost a quarter-of-a-million serious injuries would be prevented through 2050.
“Joe Biden and Pete Buttigieg illegally twisted mileage standards to create an electric vehicle mandate — jacking up car prices for American families and forcing manufacturers to produce vehicles no one wanted,” said U.S. Transportation Secretary Sean P. Duffy. “I’m proud to stand with President Trump in the Oval Office today to say that those days are over. This administration understands the freedom of every American family starts with affordable cars. That’s why our new standards will make that dream more achievable by letting auto manufacturers produce the cars that fit family's needs at a lower price.”
Secretary Duffy’s “Freedom Means Affordable Cars” initiative is among the largest deregulatory actions so far under the second Trump Administration.
“Restoring reasonable fuel economy standards will also save lives and make our roads safer,” said NHTSA Administrator Jonathan Morrison. “Newer cars are safer cars and by reducing vehicle prices, more American families will be able to afford newer vehicles. I’m proud of our team for the tremendous job they’ve done developing this proposal.”
The new proposal would apply to passenger cars and light trucks for model years 2022-2031. The full proposed rule can be found HERE.
Eliminating the Backdoor EV Mandate:
The new rule would reset the Biden-Buttigieg Administration’s illegal standards that exceeded Congress’ intent and amounted to a backdoor electric vehicle mandate. Automakers and their hardworking employees lost billions complying with the last administration’s regulation--investing in uneconomic production lines and promising thousands of jobs that were never sustainable without massive government support and funneling millions in compliance credits to EV manufacturers. All the while, consumers were denied the choice of what is best for their needs, and families were forced to pay more for vehicles.
Additional Information:
Consistent with direction in Secretary Duffy’s memorandum, “Fixing the CAFE Program,” NHTSA is proposing to reset CAFE standards for model years 2022-2031. From those reset standards, developed without consideration of electric vehicles and credit trading, NHTSA is proposing to increase the fuel economy standard by 0.5% per year for passenger cars from model years 2023 through 2026, followed by 0.35% in model year 2027, and 0.25% from model year 2029 to 2031. For light trucks, NHTSA is proposing an increase of 0.5% for model year 2023 through 2026, followed by 0.7% in model year 2027, and 0.25% from model year 2029 to 2031.
In terms of miles per gallon, NHTSA estimates that the proposed standards would achieve a fleet average fuel economy of 34.5 miles per gallon by model year 2031. The proposed standards would also eliminate the CAFE credit trading program starting in model year 2028, which artificially propped up the EV industry at the expense of traditional automakers. And, the proposed rule would reclassify crossovers and small SUVs as passenger automobiles instead of light trucks, removing a market distortion that existed for decades and realigning the categories with congressional intent.
A 45-day public comment period will begin when the proposal is published in the Federal Register, and a public hearing will be held at a date to be announced. The proposal models a
range of alternatives and NHTSA requests comment on the full range of standards, including combinations of alternatives.
You can read the proposal here. For more information, please see NHTSA’s Corporate Average Fuel Economy page.
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