| Hello John, In a huge win for affordability and common sense, the Trump administration said it would roll back the Biden-era mileage standards for automobile model years 2022 through 2031. So, what does this mean for everyday Americans? It means misguided policies Washington put in place to dictate what kind of car you buy are coming off the books. Essentially, these policies raised the cost of gas-powered vehicles. Their goal? Make them less affordable so you’d buy an electric vehicle instead. Let’s break it down: The Corporate Average Fuel Economy standards mandate minimum fleetwide average fuel efficiency for carmakers. CAFE standards were initially established during the oil crisis of the 1970s, mainly to reduce gas consumption. They have been ratcheted up ever since, and under Joe Biden, the goal pretty clearly became to force Americans into buying EVs. - Thus, in 2024, the Biden administration mandated extraordinarily stringent fuel economy standards for passenger cars and trucks — a 50.4 miles-per-gallon target by model year 2031. For gasoline-powered cars, this standard would be impossible to meet, which was the point.
- The Biden rules were meant to force Americans into electric vehicles that they have shown they do not want. Indeed, even with the now-ended generous tax credits, EVs only comprised about 8% of U.S. new car sales in 2024.
Since EVs cost so much to build, automakers must sell them at a loss. How do they cover that loss? By significantly raising the price of gas-powered cars. That means higher costs for the vast majority of car buyers (new and used). The new Trump proposal aims for an industry fleetwide average of approximately 34.5 mpg by the 2031 model year (up from about 30 mpg now). Here’s the bottom line: Carmakers will now be free to make the vehicles that consumers actually want to buy, not the electric ones that Biden tried to force them to make. This is a win for innovation that will lead to better, more affordable cars for American families. The Working Families Tax Cuts, enacted in July 2025, made additional changes that stopped government efforts to push Americans into more expensive EVs. The bill: - Ended the $7,500 tax credit on EVs costing up to $80,000 and available to those making up to $300,000 a year.
- Eliminated civil penalties for carmakers that do not meet the CAFE standards, making the rules “toothless.”
Taken together, it is estimated that these actions will reduce the cost of a new car by nearly $1,000 and save Americans $109 billion over five years. Additionally, automakers will now be able to make cars safer, which will save lives. Lower vehicle prices tie directly to AFP’s 2026 policy priority — making life more affordable for American families through smart policies like permitting reform that reduce energy costs. ✍️ Take a moment to sign the letter urging your lawmakers to support permitting reform. |