In one of his first acts as the newly confirmed Secretary of the Department of Transportation (DOT), Sean Duffy has taken swift action to roll back the Biden-Harris administration’s stringent fuel economy standards for vehicles, signaling a dramatic shift in the nation’s transportation and environmental policies.
Duffy, who was sworn into office on Tuesday, signed a memorandum initiating the process of resetting the National Highway Traffic Safety Administration’s (NHTSA) Corporate Average Fuel Economy (CAFE) standards. The move comes as part of the Trump administration’s broader effort to reduce regulatory burdens on the auto industry and lower costs for consumers.
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In a press release issued by the DOT, the agency argued that the Biden-era CAFE standards had “diminished the strength of America’s auto industry” and “denied Americans the full range of affordable vehicles they need.” The release emphasized Duffy’s commitment to reversing what the administration characterizes as excessive government overreach.
The CAFE standards, first enacted by Congress in 1975, were designed to regulate the fuel economy of vehicles sold in the United States. Under former President Joe Biden, the NHTSA strengthened these standards in June 2024, requiring automakers to increase fuel economy by 2% annually for new passenger vehicles from 2027 to 2031 and for light trucks from 2029 to 2031. These updates were part of Biden’s broader green energy agenda, which aimed to reduce greenhouse gas emissions and accelerate the adoption of electric vehicles (EVs).
However, the stricter standards faced significant backlash from automakers and critics who argued that the regulations would impose billions of dollars in compliance costs, ultimately driving up vehicle prices for consumers. The Biden administration’s push for EVs also included stringent tailpipe emissions standards introduced in March 2024 and a $7.5 billion investment to build a national network of 500,000 EV chargers by 2030. As of April 2024, only 38 chargers were operational, raising questions about the feasibility of the administration’s goals.
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In his statement, Duffy expressed gratitude for his confirmation and outlined his priorities as DOT secretary. “I am deeply honored by the trust placed in me by President Trump to lead this important Department and for the Senate in swiftly confirming my nomination,” Duffy said. “We are already hard at work executing the President’s vision to usher in a golden age of transportation by taking immediate action to remove government overreach and lower costs for hardworking Americans.”
Duffy specifically criticized the Biden administration’s CAFE standards, calling them “burdensome and overly restrictive” and accusing the previous administration of pushing a “radical Green New Deal agenda.” He argued that the standards had needlessly driven up the cost of vehicles, limiting consumer choice and affordability.
President Donald Trump, who returned to office on January 20, has been a vocal critic of Biden’s EV policies. During his campaign, Trump vowed to repeal what he described as Biden’s “de facto electric vehicle mandate,” labeling the measures “insane.” Hours after his inauguration, Trump signed an executive order aimed at unleashing “America’s affordable and reliable energy and natural resources,” which he said would “restore American prosperity.”
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The Trump administration’s approach marks a stark departure from Biden’s climate-focused agenda, prioritizing economic growth and energy independence over environmental regulations. The rollback of CAFE standards is seen as a key step in this direction, with the administration arguing that it will benefit both the auto industry and consumers.
The auto industry has largely welcomed Duffy’s move, with many manufacturers expressing relief at the prospect of reduced regulatory costs. However, environmental groups have condemned the decision, warning that it could undermine efforts to combat climate change and increase the nation’s reliance on fossil fuels.
“This is a step backward for both the environment and public health,” said Jessica Tran, a spokesperson for the Environmental Defense Fund. “Weakening fuel economy standards will lead to higher emissions, worse air quality, and greater costs for consumers in the long run.”
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The White House has not yet commented on Duffy’s memorandum or the broader implications of the policy shift. However, the administration’s actions suggest a renewed focus on deregulation and economic growth, setting the stage for a contentious debate over the future of transportation and energy policy in the United States.
As the DOT begins the process of revising the CAFE standards, the move is likely to face legal challenges from environmental advocates and Democratic lawmakers. For now, Duffy and the Trump administration are pressing forward with their vision of a more affordable and less regulated auto industry, signaling a new chapter in the nation’s transportation policy.
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