Fact Sheet: President Donald J. Trump Announces the Reset of Corporate Average Fuel Economy (CAFE) Standards

Whitehouse.gov ^ | December 3, 2025 | The White House

[SoConPubbie]

DELIVERING A WIN FOR AMERICAN FAMILIES AND AUTOMAKERS: Today, President Donald J. Trump is delivering major relief to American families by resetting the Biden Administration’s costly and unlawful Corporate Average Fuel Economy (CAFE) standards.

• President Trump is returning CAFE standards to levels that can actually be met with conventional gasoline and diesel vehicles. The Biden Administration standards imposed unrealistic fuel economy targets that effectively resulted in an electric vehicle (EV) mandate.

• The Trump Administration’s reset of the CAFE standards ensures the program’s fidelity to the legal restrictions set forth by Congress.

• The Biden standards broke the law by going far beyond the requirements that were mandated by Congress when it created the CAFE program.

SAVING AMERICAN FAMILIES MONEY: Today’s action represents an enormous win in response to the cost-of-living increases imposed on the economy by the Biden Administration.

• The Biden Administration created extraordinarily stringent fuel economy standards for passenger cars and trucks, set at such aggressive levels that they were impossible to meet with available technologies for gas cars.

• The Biden standards would have compelled widespread shifts to EVs that American consumers did not ask for, accompanied by significant cost-of-living increases. Since EVs are so expensive to build, automakers must sell them at a loss and make up the difference by significantly raising the sticker price of gas cars.

• If President Trump had done nothing, the Biden standards would have raised the average cost of a new car by nearly $1,000, relative to the cost under the standards announced today.

• President Trump’s actions will save American families $109 billion in total over the next five years.

• By helping more Americans buy newer, safer vehicles, this reset is projected to save more than 1,500 lives and prevent nearly a quarter-million serious injuries through 2050.

MARKING A CRITICAL BATTLE IN THE FIGHT AGAINST BIDEN’S HIDDEN COST-OF-LIVING INCREASES: The CAFE reset represents the latest action by President Trump to prevent the Biden EV-related policies from raising costs for Americans.

• In June, President Trump signed a joint resolution to end the California EV mandates, which would have effectively been a 100% ban on new gas cars sold in the state by 2035 (with similar effects in 17 states that adopted California’s standards).

• In July, President Trump signed into law the Working Families Tax Cuts Act, which set the civil penalty for violating CAFE standards to $0, protecting the U.S. auto manufacturing industry from significant fines.

• Under President Trump, the Environmental Protection Agency (EPA) has also released its proposal to rescind the 2009 Endangerment Finding, which ignores Congress’ clear intent under the Clean Air Act and has been used to justify over $1 trillion in costs for the American consumers and economy.

• Today’s action helps ensure that even if far-left Democrats return to power, the CAFE standards are sensible, so U.S. automakers are not held to infeasible standards.

• Combined with auto loan interest deductibility for new made-in-the-USA vehicles, President Trump continues to deliver real relief that makes owning a safe, reliable car more affordable for every American family.

[SoConPubbie]

For you Trump Naysayers and the FreeRepublic "Yea, but" brigade, are you better off with President Trump, or do you prefer the Democrats in charge while you make the Perfect the enemy of the Good?!?!

[Rural_Michigan]

Made in the USA interest deduction is interesting. Too bad for people who like quality made in Japan products.

[The Louiswu]

Rapidly Losing interest in the Trump Presidency. President Trump is dealing with minutiae and missing the larger picture. No doubt the US will be sending more money to The Ukes as well as lots of people who actively want us dead. Enough is enough, President Trump needs to do better, the Congress needs to do better the judiciary needs to do better, do better for America and her Citizens.

[jimtorr]

From “The Drive” website, dated 03 Dec, “....fleet fuel mileage averages for automakers must now total just 34.5 mpg by 2031 rather than the previously set 50.4 mpg.”

I had missed that when it came out.

[crusty old prospector]

I paid $2.19 a gallon in Texas today. If you would have told me 30 years ago that gasoline would sell for that in 2025, I would have laughed in disbelief. God bless the Permian Basin oil community.

[jimtorr]

These CAFE standards are not minor details. They have a huge impact on the economy and everyone’s transportation budgets.

You must have missed everything that Trump and congress has actually accomplished, in spite of what small time tyrants in black robes are trying to sabotage.

[ridesthemiles]

STEP BY STEP

[iamgalt]

The 50 was going to be impossible and the rats knew it. They had every intention of using the rules to force ICE vehicles off the roads.

[gibsonguy]

There is nothing trivial about this. Trump just save ICE vehicles and saved the country a massive amount if misery. Your comment is preposterious.

[GOPJ]

President Trump’s a million times better than the best democrat... Sorry he doesn’t walk on water but you can’t have it all.

[bigbob]

This is the right thing to do - let the market decide.

However, having in the automotive electronics industry, it is an undeniable fact that many technological innovations have occurred because of the government’s CAFE mandate. Let’s just change the incentive to things that don’t monkey with free markets, like space exploration.

[Dr. Sivana]

Too bad for people who like quality made in Japan products.

The quality of my "Made in Kentucky" Toyota Avalon is fine.

[spintreebob]

“HIDDEN COST-OF-LIVING INCREASES”

Stupid regulations raise the cost of delivering the milk from the farm to the dairy and from the dairy to the food store.

Likewise delivering wheat to bakeries to stores to consumers.

Spell it out. Craft a message we can relate to.

[Drew68]

President Trump is returning CAFE standards to levels that can actually be met with conventional gasoline and diesel vehicles. The Biden Administration standards imposed unrealistic fuel economy targets that effectively resulted in an electric vehicle (EV) mandate.

We need to return to the pre-Obama standards. Bring back the AMC 4.0 liter straight-6.

[Mr Rogers]

My Honda Ridgeline is not only made in America but has more American parts than most Fords or dodges. As do many Toyotas….

[Rural_Michigan]

Exactly. I remember gas was 2.79 a gallon in August 2007 in Arlington TX

[spintreebob]

“CAFE mandate. Let’s just change the incentive to things that don’t monkey with free markets”

In the long run, is it better for free markets to give buyers the option of more (or less) fuel economy or let the swamp dictate it to the “free market”?

Power locks, power seats, seat warmers are options. Why not fuel economy as a standard....if there is a consumer demand for it?

[marktwain]

Too bad for people who like quality made in Japan products.

The quality of my “Made in Kentucky” Toyota Avalon is fine.

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So far, I am very happy with the Hundai made in Alabama.

[marktwain]

Exactly. I remember gas was 2.79 a gallon in August 2007 in Arlington TX

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Because of inflation, $2.79 in 2007 is equivalent to $4.35 in 2025.