President Donald Trump is preparing to unveil a major rollback of fuel economy standards, reversing rules finalized under former President Joe Biden and marking one of the most consequential shifts in U.S. auto policy in years, according to sources familiar with the plan.
The National Highway Traffic Safety Administration is expected to propose sharply reduced fuel economy requirements for model years 2022 through 2031. The announcement is scheduled for Wednesday, Dec. 3, at the White House, where executives from major U.S. automakers are expected to attend.
While the administration declined to comment, officials involved say the move is designed to give manufacturers more flexibility to sell gas-powered vehicles at a time when EV sales growth has slowed.
Automaker Leaders Expected at Announcement
Stellantis CEO Antonio Filosa is slated to be present at the event, a source with direct knowledge confirmed. As for General Motors, uncertainty remains over whether CEO Mary Barra will appear at the White House or attend her previously scheduled New York Times DealBook event in Manhattan.
The presence—or absence—of top auto leaders is being closely watched, given the industry’s mixed response to the administration’s aggressive push against Biden-era climate and fuel efficiency policy.
Undoing Biden’s Targets
The rollback would unwind the Biden administration’s 2023 rule that aimed to raise Corporate Average Fuel Economy (CAFE) standards to roughly 50.4 miles per gallon by 2031 for light-duty vehicles. Under those rules, gasoline consumption was projected to drop by 64 billion gallons, with emissions reduced by 659 million metric tons.
Those standards were also expected to generate an estimated $35.2 billion in net benefits for drivers through reduced fuel spending.
Trump officials have argued that Biden overstepped by building the fuel economy targets around high electric-vehicle adoption, a market assumption the new administration says is unrealistic. In January, Transportation Secretary Sean Duffy instructed NHTSA to rescind the Biden standards entirely.
A Larger Effort to Boost Gas-Powered Vehicles
Wednesday’s announcement fits into a broader policy pattern: Trump has moved quickly to dismantle incentives for EV production and restore advantages for traditional gas vehicles.
Earlier this year, he signed legislation eliminating fuel economy penalties faced by automakers dating back to the 2022 model year. In another major move, he blocked California from enforcing its plan to phase out the sale of gas-powered vehicles by 2035.
The practice of easing compliance costs is significant. Stellantis alone paid $190.7 million in fuel economy penalties for 2019–2020 and nearly $400 million between 2016 and 2019. GM paid $128.2 million for the 2016–2017 period.
Industry analysts say the administration’s new proposal could dramatically reduce compliance pressure, especially for companies heavily dependent on trucks and SUVs.
What Comes Next
NHTSA’s formal proposal is expected to trigger months of legal scrutiny, public comment, and likely court challenges from environmental groups and states that supported Biden’s stricter targets.
For now, the auto industry is bracing for yet another shift in the regulatory landscape, one that could reshape the trajectory of the American vehicle market for the next decade.
