26 States Sue Biden Admin Over Relaxed NHTSA Fuel Economy Rule
26 states and cities sued the Biden administration on Oct 2, 2026, over relaxed fuel standards.
Why it matters: These lawsuits challenge a key federal regulation that lowers fuel economy requirements for automakers. The case affects corporate compliance and environmental law amid shifting regulatory policies.
- 26 states, counties, and cities led by California AG Rob Bonta sued NHTSA on October 2, 2026.
- The rule lowers the Corporate Average Fuel Economy (CAFE) standard to 34.9 mpg by 2031, down from 50.4 mpg under Biden’s earlier policy.
- The administration projects $1,300 savings per vehicle and $138 billion total savings over five years for consumers.
- Environmental groups warn the rollback could increase CO2 emissions by over 22,000 tons annually by 2035, per NRDC legal arguments.
On October 2, 2026, a coalition of 26 states, counties, and cities led by California Attorney General Rob Bonta filed a lawsuit against the National Highway Traffic Safety Administration (NHTSA). The suit challenges the Biden administration's final rule that relaxes the Corporate Average Fuel Economy (CAFE) standards, which set required fuel efficiency levels for new cars and light trucks. The complaint from California’s AG office argues that the rule violates Congress's mandate for NHTSA to set standards at the "maximum feasible" level.
The new regulation reduces the fleetwide average fuel economy requirement to 34.9 miles per gallon (mpg) by model year 2031. This represents a significant decrease compared to the 50.4 mpg target laid out in the Biden administration's prior, stricter standards — designed to reduce fuel consumption and emissions — as reported by the Associated Press.
The administration defends the rollback by estimating consumer savingsaveraging approximately $1,300 per vehicle and totaling about $138 billion across all buyers over the next five years. The reasoning is that lower fuel economy requirements reduce costs for manufacturers, passing savings to buyers.
New York Attorney General Letitia James, part of the coalition, criticized the rule for failing to uphold legal and environmental protections. In a press release, she emphasized the rollback undermines consumer protections against rising fuel costs and violates statutory mandates.
Separately, the Natural Resources Defense Council (NRDC) filed a lawsuit in the U.S. Court of Appeals for the Second Circuit. NRDC attorney Atid Kimelman stated the rollback weakens standards below current fleet averages, contradicting legislative requirements. The NRDC estimates the change could cause an increase in carbon dioxide emissions by more than 22,000 tons annually by 2035, based on internal assessments cited in legal filings.
This ongoing litigation illustrates the tension between federal regulatory shifts and state efforts prioritizing environmental goals. The outcome will influence automaker compliance obligations, regulatory policy, and corporate environmental strategies nationwide.
By the numbers:
- 26 states, counties, and cities — parties suing the Biden administration
- 34.9 mpg — new fleetwide average fuel economy standard by 2031 under the rollback
- 50.4 mpg — previous fleetwide standard under Biden’s stricter rule
- $1,300 — estimated average vehicle savings from the rollback
- 22,000+ tons — estimated annual carbon dioxide emissions increase by 2035 as argued by NRDC
Yes, but: The administration argues that lower fuel economy requirements reduce vehicle costs, benefiting consumers, but environmental groups contend the policy compromises emission reduction goals.
What's next: Legal proceedings are underway; court rulings on these challenges are expected to set precedents for future regulatory standards and environmental litigation.