On December 3, 2025, President Donald Trump revealed a significant shift in federal policy regarding automotive fuel efficiency, prioritizing gasoline-powered vehicles over electric alternatives. This decision involves the Transportation Department's plan to weaken fuel efficiency requirements for millions of new cars and light trucks. The administration claims that these changes will save consumers $109 billion over five years and reduce the average cost of a new car by $1,000.

The previous administration under President Joe Biden had implemented stricter efficiency standards aimed at increasing the adoption of electric vehicles. Trump criticized these standards, asserting that they compelled automakers to invest in costly technologies that ultimately raised vehicle prices and diminished performance. He referred to the push for electric vehicles as a "green new scam," suggesting that consumers were overpaying for subpar vehicles.

For over fifty years, fuel efficiency standards have driven automakers to enhance the mileage of their vehicles, leading to innovations such as electric and hybrid cars. The recent announcement represents a significant setback for policies aimed at promoting electric vehicles, which are central to Biden's climate change strategy.

Transportation is the largest contributor to greenhouse gas emissions in the United States. The Biden administration had adopted a dual approach to mitigate these emissions, offering tax incentives for electric vehicle purchases while enforcing stringent fuel efficiency standards to encourage the production and sale of less polluting vehicles. This rollback raises concerns about the future of environmental initiatives and the potential impact on public health and climate stability.