Trump Approves New Fuel-Economy Standards, Scraps Biden-Era EV Rules

President Donald Trump announced on Saturday evening (September 26, 2026) that he has approved new federal fuel-economy standards, scrapping the Biden-era rules that aimed to promote electric vehicles, as Reuters reports.

Trump called the decision a “GREAT DAY” for American workers and consumers, claiming in his Truth Social post that the new standards would remove “wasteful spending” from car building in America and cut new car prices by thousands of dollars for American families.

Transportation Secretary Sean Duffy said the administration will formally announce the change on Monday, according to the Washington Examiner. Under the Biden administration’s rules, automakers faced a 50.4-miles-per-gallon standard, while a December proposal would have lowered the requirement to an average of 34.5 miles per gallon for cars and light trucks in model year 2031.

Congress has already removed fines for manufacturers that do not meet mileage standards, saving the industry hundreds of millions of dollars.

Trump thanked secretaries Sean Duffy and Howard Lutnick and linked the decision to the return of factories to Michigan, Ohio, Indiana and South Carolina, saying “over $100 billion is being invested in American vehicles.”

Environmental groups criticized the rollback, warning that it will increase car emissions and represents a retreat from climate goals.