The Trump administration has informed car manufacturers that they will not face fines for failing to meet fuel economy targets from 2022 onward. Recent legislation, known as the One Big Beautiful Bill Act, has eliminated penalties related to Corporate Average Fuel Economy (CAFE) regulations, effectively weakening requirements for improving fuel efficiency. The federal government is retracting support for cleaner vehicles, as other measures include ending EV tax credits and cutting funding for electric vehicle infrastructure. This shift is anticipated to increase costs for consumers by necessitating more gasoline purchases over time.
The government is wiping away penalties under the Corporate Average Fuel Economy (CAFE) program dating back to the 2022 model year, effectively neutering longstanding fuel efficiency rules.
The Trump administration's decision allows car manufacturers to avoid fines for exceeding fuel economy standards, undermining efforts to encourage cleaner vehicles.
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