WASHINGTON — After the confirmation vote and the official swearing in, new Transportation Secretary Sean Duffy’s first act in his new office was to sign a memorandum to rescind or remove certain fuel standards implemented by the Biden Administration.
According to a release issued by DOT, Duffy’s memo directs the start of a process of “resetting Corporate Average Fuel Economy (CAFE) standards, which DOT says “will ultimately lower the price of a car for American consumers and eliminate the electric vehicle mandate.”
“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. The memorandum signed today specifically reduces the burdensome and overly restrictive fuel standards that have needlessly driven up the cost of a car in order to push a radical Green New Deal agenda. The American people should not be forced to sacrifice choice and affordability when purchasing a new car.”
The memorandum signed by the Secretary directs the Office of the General Counsel, the Office of the Undersecretary for Policy, and the National Highway Traffic Safety Administration to immediately initiate a rule-making to rescind or replace all existing CAFE standards.
As a result of the regulatory costs, fuel economy standards have diminished the strength of America’s auto industry and denied Americans the full range of affordable vehicles they need.
DOT cited statistics from Cox Automotive that include:
- From March 2021 to March 2024, the cost of a car increased by a total of 15.5%, from an average of $40,881 to an average of $47,218.
- Current rule requires all passenger cars and light trucks to meet a standard of 50.4 miles per gallon (mpg) in Model Year 2031. This government mandate has dramatically increased the average price of a new car to nearly $48,000, driving up the cost and making it unaffordable for American consumers.
- The price of a car has continued to spiral. In March 2024, of the 275 new-vehicle models available for purchase, only eight had transaction prices below $25,000. By comparison in March 2021, more than 20 vehicles had transaction prices below $25,000.
Bruce Guthrie is an award-winning journalist who has lived in three states including Arkansas, Missouri and Georgia. During his nearly 20-year career, Bruce has served as managing editor and sports editor for numerous publications. He and his wife, Dana, who is also a journalist, are based in Carrollton, Georgia.
