Fact Sheet: President Donald J. Trump Announces the Reset of Corporate Average Fuel Economy (CAFE) Standards

12/3/2025

Fact Sheets

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Action Summary

Reset of CAFE Standards: President Trump resets the Biden Administration’s CAFE standards to levels achievable by conventional gasoline and diesel vehicles, ensuring compliance with Congressional mandates.
Economic Relief: The reset is designed to save American families nearly $1,000 per new vehicle and $109 billion in total over the next five years, countering cost-of-living increases imposed by prior standards.
Impact on EV Mandate: The previous Biden standards effectively mandated a shift toward electric vehicles (EVs) by setting unattainable targets, increasing production costs and forcing automakers to raise gas car prices.
Safety and Public Health: By facilitating the purchase of newer, safer vehicles, the reset is projected to save over 1,500 lives and prevent approximately 250,000 serious injuries through 2050.
Policy and Regulatory Context: This action is part of a broader effort by the Trump Administration to roll back Biden’s policies – including ending California’s EV mandates through a joint resolution, enacting the Working Families Tax Cuts Act to reduce penalties, and proposing to rescind the 2009 EPA Endangerment Finding.
Long-Term Industry Impact: The reset ensures that U.S. automakers are not burdened by infeasible standards, even if future administrations attempt similar policies, while also supporting auto loan interest deductibility for new American-made vehicles.

Risks & Considerations

The reset of Corporate Average Fuel Economy (CAFE) standards may impact research and educational programs focused on sustainability and renewable energy at Vanderbilt University. There could be reduced emphasis on electric vehicle (EV) technologies, affecting programs and partnerships related to green technologies.
This policy shift could influence funding opportunities for sustainability and energy research, redirecting support away from initiatives aligned with stringent fuel economy and EV development.
Vanderbilt’s initiatives aimed at reducing carbon footprints and promoting environmental responsibility may face challenges in aligning with federal policies that now prioritize conventional fuel vehicles.
If there is a national decrease in focus on EVs, there could be a reduction in industry partnerships and internships related to emerging green technologies, affecting student opportunities and career pathways in these sectors.

Impacted Programs

The Vanderbilt Initiative for Energy and Environment may need to adjust its focus to account for changes in federal environmental priorities, potentially seeking alternative funding or partnership opportunities.
Engineering programs that incorporate EV technology and sustainability may experience shifts in curriculum emphasis or research focus in response to changing industry demands.
The School of Law may see increased interest in studying the legal implications of environmental and energy policy changes, providing opportunities for research and curriculum development.

Financial Impact

There may be less federal funding available for projects and research centers that focus on electric vehicles and advanced fuel economy technologies.
Vanderbilt’s strategic planning for infrastructure that supports environmental initiatives, such as EV charging stations, may need reevaluation in light of altered federal direction.
Potential changes in donor and corporate partner priorities could affect funding streams, particularly those aligned with sustainable transportation and energy efficiency.

Relevance Score: 3 (The order presents moderate risks typically involving compliance or ethics.)

Key Actions

Sustainability and Environmental Management Program should evaluate the impact of changes to CAFE standards on environmental policy and education. This could inform adjustments to curriculum and research focus, ensuring alignment with current federal regulations and sustainable practices.
The Office of Federal Relations should engage with policymakers to understand the implications of rescinding the Endangerment Finding and its effects on federal funding and regulatory priorities. This engagement can help Vanderbilt anticipate shifts in research funding availability and compliance requirements.
Vanderbilt Law School should analyze the legal aspects of the changes to CAFE standards and the implications of the administration’s actions on regulatory law. This analysis could be useful for advising the university on compliance and for contributing to academic discourse on regulatory changes.
The Department of Economics should study the economic impacts of the reset on the automotive industry and consumer behavior. Insights from this research could be valuable for Vanderbilt’s strategic planning around investments and partnerships in technology and innovation sectors.
Vanderbilt’s Engineering Program should explore opportunities for research and development in conventional vehicle technologies that meet the revised CAFE standards. By leveraging its expertise in automotive engineering, the program can enhance its contributions to industry innovation.

Opportunities

The reset of CAFE standards presents an opportunity for Vanderbilt’s Business School to explore new curricula focused on the intersection of business, energy policy, and technology. Programs can be developed to prepare students for careers in industries affected by these regulatory changes.
Vanderbilt’s Research and Innovation Hub can seek partnerships with automotive companies aiming to adapt to new standards, potentially opening avenues for collaborative research and development projects.
The focus on cost savings and economic relief provides an opportunity for Vanderbilt’s Public Policy Studies Program to engage in policy analysis and advocacy regarding the broader economic implications of the reset, contributing to national debates on energy and transportation policy.
By hosting workshops and conferences on the implications of the new CAFE standards, Vanderbilt can position itself as a leader in fostering dialogue between industry experts, policymakers, and academia.

Relevance Score: 3 (The reset of CAFE standards requires some adjustments to programs and research focus to align with changes in policy and industry trends.)

Average Relevance Score: 2

Timeline for Implementation

N/A – No specific timeline, enforcement deadline, or implementation deadline is mentioned in the fact sheet.

Relevance Score: 1

Impacted Government Organizations

White House: The White House, as the executive office of the President, is central to this action, which involves resetting the CAFE standards to align with congressional mandates.
Environmental Protection Agency (EPA): The EPA is directly impacted as the new action contrasts with its previous authority under the 2009 Endangerment Finding, a stance now being re-evaluated by the administration.
Congress: Although not an agency in the executive sense, Congress is influential here since the new CAFE standards reset emphasizes fidelity to the statutory requirements originally established by Congressional legislation.

Relevance Score: 2 (A small number of key Federal bodies are impacted by this action.)

Responsible Officials

N/A – The fact sheet is a presidential announcement that does not specify any particular agency or official responsible for implementing the directive.

Relevance Score: 1 (No specific implementing officials are identified, so the directive does not directly affect designated senior officials.)