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September 28, 2026 / 12:15 PM EDT / CBS News

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The Trump administration unveiled new fuel economy standards on Monday, rolling back Biden-era rules aimed at cutting down emissions and encouraging more consumers to switch to electric vehicles.

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Established by Congress in 1975, the Corporate Average Fuel Economy (CAFE) standards dictate how many miles vehicles must be able to drive on a gallon of fuel, with specific standards for light-duty vehicles, as well as medium- and heavy-duty trucks.

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Over time, automakers have gradually improved their vehicles' average fuel efficiency.

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Under the new Trump administration rule, the National Highway Traffic Safety Administration (NHTSA) estimates that the new standards will lead to a fleetwide average of 34.9 miles per gallon by model year 2031 — down from a projected 50.4 miles per gallon in 2031 under rules put in place by the Biden administration.

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In a statement Monday, the Department of Transportation said the new rules will lower the upfront cost of new vehicles by an average of $1,300 and give automakers more choice regarding the types of cars they manufacture.

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"Thanks to President Trump's leadership, we have finally ended the illegal mandate that forced automakers to produce more expensive electric vehicles…

Original source: https://www.cbsnews.com/moneywatch/

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