Trump Administration Rescinds Rule Boosting EV Production

Move aims to lower fuel economy requirements for automakers, making it easier to sell gas-powered cars.

Published on Feb. 21, 2026

Got story updates? Submit your updates here. ›

The Trump administration announced it is rescinding a rule that incentivized automakers to produce electric vehicles in order to meet fuel economy requirements. The rule, known as the "fuel content factor", overstated the energy savings of EVs and allowed automakers to count them more towards their fleetwide fuel economy averages. Environmentalists had long criticized this provision, arguing it undermined real-world fuel economy improvements.

Why it matters

This move is part of a broader effort by the Trump administration to disincentivize EV production and make it easier for automakers to sell gas-powered vehicles. It comes after the administration previously proposed slashing fuel economy standards that were finalized under the Biden administration.

The details

The Energy Department said it will remove the "fuel content factor" provision from its fuel economy calculations, after a court ruled it was "unlawful". This provision had allowed automakers to count EVs as having unrealistically high fuel economy values, around 7 times higher than their actual energy content. Automakers had pushed back against fully eliminating the factor, which the Biden administration had initially proposed.

  • On September 2025, a federal appeals court ruled the "fuel content factor" provision was unlawful.
  • In December 2026, the Trump administration proposed significantly reducing fuel economy requirements for model years 2022 to 2031.

The players

Trump Administration

The presidential administration led by former President Donald Trump, which is taking steps to roll back fuel economy and emissions regulations to benefit the production of gas-powered vehicles.

Energy Department

The U.S. federal agency that oversees energy policy, including regulations related to vehicle fuel economy.

Automakers

Vehicle manufacturers that have pushed back against fully eliminating the "fuel content factor" provision, which allowed them to count EVs as having unrealistically high fuel economy.

Environmentalists

Advocacy groups that have long criticized the "fuel content factor" for undermining real-world fuel economy improvements.

Got photos? Submit your photos here. ›

What’s next

The Energy Department plans to propose additional revisions to its fuel economy calculation rules following the court's decision to remove the "fuel content factor" provision.

The takeaway

This move by the Trump administration is part of a broader effort to roll back regulations and incentives for electric vehicles, making it easier for automakers to continue producing and selling gas-powered cars. It highlights the ongoing policy battles over the future of transportation and the transition to cleaner vehicle technologies.