Michigan, California, and more than two dozen states, cities, and counties filed suit against the U.S. Transportation Department over its new fuel economy rules. The revised standards require automakers to hit 34.9 miles per gallon on average by 2031, down from the 52.5 mpg target set under the previous administration. The plaintiffs argue NHTSA ignored the 'maximum feasible' requirement and the presence of millions of EVs on the road. They also point to the department's own estimates: drivers would lose roughly $220 billion in fuel savings, and U.S. gasoline consumption would rise by 121 billion gallons through 2050 compared with the earlier rules. The rule also ends credit trading among automakers in 2028, a revenue source for EV makers like Tesla and Rivian. Supporters say it lowers vehicle prices, but the government's numbers show fuel costs rising by more than $1,600 per vehicle over its life, which undercuts that argument.
