Another Win for Consumers: President Trump Announces Reset of CAFE Standards

WASHINGTON DC (12/3/25) – Today, President Trump announced a reset of Corporate Average Fuel Economy (CAFE) standards, an outdated fuel efficiency mandate that has, for decades, made trucks and cars in the United States significantly more expensive. 

American Energy Alliance President Tom Pyle released the following statement:

“President Trump’s reset of the CAFE program is yet another win for the American people. Both car manufacturing and car purchasing are expensive and difficult enough without the federal government stepping in to impose its will on the auto industry. 

“The Biden administration abused the CAFE program to implement a de facto electric vehicle mandate. EVs, which currently cost thousands more than gas-powered cars and trucks, are simply not affordable for most Americans, and consumers should not be forced into buying them.

“The One Big Beautiful Bill took an important step by zeroing out CAFE penalties. By fully reversing the Biden-era CAFE standards, automakers will have the long-term certainty they need to invest with confidence to produce the cars people want to drive. The marketplace must be shaped by consumer choice, not political preference. Today’s action prioritizes the American people over meddling bureaucrats in Washington. These directives are a positive start in the right direction, and we look forward to assisting the administration in its mission of reducing federal regulations and protecting American freedoms.

We also call on Congress to seriously consider repealing the CAFE law altogether, as it was never intended to force such dramatic changes to the automobile market, such as those envisioned by President Biden.”

Background

A significant reason new car prices have spiralled out of control is the ever-growing burden of regulations. According to Kelley Blue Book, the average transaction price for a new vehicle surpassed $50,000 for the first time in September, a threshold that’s putting car ownership out of reach for millions of Americans. Perhaps most strikingly, the average transaction price for electric vehicles (EVs) was $9,300 higher than the overall industry average. EVs remain significantly more expensive than conventional vehicles, which underscores why it’s a positive development that the incoming Trump administration is rejecting the Biden-era push to force consumers into EVs through aggressive mandates and subsidies.

AEA Experts Available For Interview On This Topic:

• Tom J. Pyle, President
• Kenny Stein, Vice President of Policy
• Alex Stevens, Manager of Policy and Communications

Additional Background Resources:

• Dissolve Government Motors
• Promises Made, Promises Kept: President Trump Signs Resolutions to Save Our Cars

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