The Trump administration has finalized a rollback of federal fuel economy standards, officially lowering the mileage requirements that automakers must meet across their fleets of new cars and trucks. The revised rules reduce the stringency of the Corporate Average Fuel Economy, or CAFE, standards that had been tightened under the Biden and Obama administrations.

Under the new standards, automakers will face less pressure to improve the average fuel efficiency of the vehicles they sell in the United States. The administration has framed the change as a measure to reduce regulatory burdens on manufacturers and keep vehicle prices accessible to consumers.

Environmental groups and policy critics contend the rollback will result in significantly higher greenhouse gas emissions over the coming decades and increase the amount Americans spend on gasoline. PBS NewsHour noted that critics describe the environmental cost as substantial, while CNBC reported the finalization of the lower benchmarks as a major shift in federal automotive policy.

The move is part of a broader effort by the Trump administration to undo climate-related regulations across multiple sectors. Previous CAFE standards had been designed to push the auto industry toward more fuel-efficient and electric vehicles, and the rollback is expected to slow that transition.

Automakers have historically had mixed reactions to fuel economy rules, with some favoring consistent federal standards over a patchwork of state-level requirements. The long-term effects on vehicle emissions and consumer fuel costs will depend in part on market conditions and how quickly electric vehicle adoption continues regardless of federal mandates.