Federal · NHTSA final rule, SAFE III

New federal fuel economy (CAFE) standards lower required mpg for 2022-2031 vehicles; NHTSA estimates $1,289 less per new car

Final rule Sept. 30, 2026 · Effective Nov. 30, 2026

Published October 18, 2026 · Last updated October 18, 2026

What it does

• New standards. For passenger cars, standards rise from the newly finalized model year (MY) 2022 level by 0.90% a year through MY 2029, then 1% a year through MY 2031. For light trucks, they rise 0.51% a year through MY 2029, then 1% a year. MY 2030 acts as a bridge for the classification change. (Final rule, section I.B.4)
• Reclassification. NHTSA changes the criteria for what counts as a non-passenger automobile, which moves lighter crossovers into the passenger car fleet. NHTSA says this explains “the significant downward shift in required fuel economy stringency beginning in MY 2030.” (Final rule, sections I.B.5 and VI.B.1)
• Credit trading removed. Manufacturers can no longer trade CAFE credits. (Final rule, section VI.B.2)

Who it affects

Automakers that sell new cars and light trucks in the U.S., and new-vehicle buyers. (Final rule, “Does this action apply to me?”)

Cost and impact (NHTSA’s estimates)

• Required mpg: about 34.9 mpg average by MY 2031 (passenger cars 40.2, light trucks 26.4). Under the 2024 standards, the figures were about 49.3 mpg (65.8 and 45.4). (Final rule, section I.B.5)
• Vehicle prices: fleetwide technology costs could fall by $15.3 billion for MY 2031. “If those savings are passed on to consumers, NHTSA estimates that per-vehicle costs for new vehicles would be reduced by $1,289 for MY 2031, on average.” (Final rule)
• Fuel use: “a 4.6-percent increase in gasoline consumption through CY 2050 when measured against the No-Action baseline.” NHTSA says total fleet fuel use still declines over time. (Final rule)
• Net benefits: at a 3% discount rate, about $137.5 billion in lower costs against $95.8 billion in lower benefits, for estimated net benefits of about $41.8 billion. (Final rule)
• Penalties: “Under current law there are no fines for manufacturer shortfalls.” (Final rule)

NHTSA notes that “all results of this analysis are subject to some degree of uncertainty.” (Final rule)

What it means for you

CAFE standards set fleet averages for manufacturers, not a rating for any single vehicle. To compare specific models, use the fuel economy label or fueleconomy.gov. (Final rule, footnote 36)

Current status

Published September 30, 2026; effective November 30, 2026. (Final rule, “Dates”)

Sources

• Federal Register: SAFE Vehicles Rule III, FR Doc. 2026-19964 (Sept. 30, 2026)
• NHTSA: Corporate Average Fuel Economy

Every statement above is drawn from the official source text linked here; section references are shown in grey. This is a plain-English summary, not legal advice. Spot an error? Tell us.