Trump Ends CAFE Fines, EV Credits, and Funding

The Trump administration has eliminated penalties for automakers failing to meet Corporate Average Fuel Economy (CAFE) standards dating back to the 2022 model year, as confirmed by the National Highway Traffic Safety Administration. The change, enacted through a tax and budget bill signed by President Trump, also removes longstanding financial consequences for exceeding emissions limits and reduces incentives for automakers to purchase compliance credits from electric-only manufacturers like Tesla. The legislation additionally ends federal tax credits for new and used electric vehicles after September 30, diminishing support for EV adoption. Critics argue these measures will increase fuel consumption, raise consumer costs, and hinder emissions reductions. The administration is also curtailing funding for EV infrastructure and seeking to relax other environmental regulations. The policy shift is part of a broader rollback of rules intended to support cleaner vehicles.