US finalizes sharply lower fuel economy standards to 34.5 mpg by 2031, reversing Biden era EV push

The US Transportation Department has finalized sharply lower fuel economy standards through 2031, cutting the fleetwide average from 50.4 mpg under the previous administration to 34.5 mpg. The move lowers new vehicle costs by about $930 per car but will increase fuel consumption by roughly 100 billion gallons and add about 5% more carbon dioxide emissions by 2050, according to the department's own estimates. This reversal undoes the Biden-era annual efficiency increases that pushed automakers toward electric vehicles. Automakers now face weaker federal incentives to produce EVs, which could slow the transition to cleaner transportation. At the same time, consumers will spend more on gasoline over the vehicle's lifetime, offsetting the upfront savings. The decision aligns with the current administration's focus on reducing vehicle prices but leaves the US on a higher emissions trajectory for decades.