WASHINGTON (Dec. 3, 2025) – The National Highway Traffic Safety Administration (NHTSA) is expected to announce the Administration’s intent to weaken federal Corporate Average Fuel Economy (CAFE) standards for vehicles. Such a dramatic shift in policy would halt five decades of progress toward U.S. cars that are cheaper and cleaner to run.
Bob Keefe, executive director of the national nonpartisan business group E2, made the following statement:
“The only thing this does is make it easier for manufacturers to sell us less efficient cars that require more gas — and more money to fill up. That’s a good thing if you’re in the oil business, but not if you’re in any other business.”
Since CAFE was signed into law in 1975, the standards have reduced American oil consumption by 25%, or approximately 5 million barrels a day, according to NHTSA. CAFE standards have saved the average household $630 to $840 per year, according to some estimates. They reduce harmful and costly health outcomes such as premature mortality, acute bronchitis, respiratory emergency room visits, and work-loss days.
For more information, please contact Daniel Baker at [email protected]
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E2 is a national, nonpartisan group of business leaders, investors, and professionals from every sector of the economy who advocate for smart policies that are good for the economy and good for the environment. Our members have founded or funded more than 2,500 companies, created more than 600,000 jobs, and managed more than $100 billion in venture and private equity capital. For more information, see www.e2.org or follow us on LinkedIn (@e2org) or X/Twitter at @e2org.