The U.S. government will finalize updated standards for new cars and light trucks on Monday that significantly reduce the required average gas mileage for automakers. The new rules establish a target of 34.5 mpg by 2031, a reversal of the 50.4 mpg requirement under the Biden administration. This change eliminates "extra credit" for electric vehicles (EVs), allowing manufacturers with gas-heavy lineups to meet federal targets without increasing electric fleet production.

President Trump stated the transition will lower car prices for families and noted that more than $100B is flowing into domestic auto production. However, the rollback is largely symbolic because Congress has already eliminated the fines for missing mileage targets. The decision to curtail EV acceleration comes as U.S. gasoline prices average $4.48 a gallon.