Transportation Secretary Directs Agency to Revise CAFE Standards to Align with Trump's Executive Orders

On January 28, 2025, the Secretary of Transportation released a memorandum addressed to the National Highway Traffic Safety Administration (NHTSA) and other relevant offices on the subject of “fixing the CAFE Program.” The memorandum notes that the corporate average fuel economy (CAFE) standards promulgated under the Biden administration are inconsistent with the policy priorities outlined in President Trump’s Executive Order 14154 (Unleashing American Energy). It directs NHTSA to immediately review and reconsider all CAFE standards, claiming that the existing standards “put coercive pressure on automakers to phase out production of” internal combustion engine vehicles and “fundamentally distort[] the market and destroy[] consumer choice at the dealership.”