FOR IMMEDIATE RELEASE
Contact: FHWA.pressoffice@dot.gov

WASHINGTON — Yesterday, Sean Duffy was officially sworn in as the 20th Secretary of the United States Department of Transportation (USDOT). Secretary Duffy was administered the oath of office by Supreme Court Justice Clarence Thomas at the U.S. Supreme Court and was joined by his family. Upon arrival at USDOT headquarters, Secretary Duffy’s first act was signing a memorandum directing staff to start the process of resetting Corporate Average Fuel Economy (CAFE) standards, which 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,” said U.S. Transportation Secretary Sean Duffy. “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 rulemaking 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.

According to data from Cox Automotive:

• 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.

This direction will implement Executive Order 14148, titled Initial Rescissions of Harmful Executive Orders and Actions, and Executive Order 14154, titled Unleashing American Energy, which were issued by President Trump on January 20, 2025.

You can read the full memorandum by clicking here.

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