On Friday, Issues & Insights posted an article about an item in the Big Beautiful Bill that was not highly publicized.

The article reports:

One of the most important provisions in the One Big Beautiful Bill has gone completely unnoticed, but promises to make the auto industry great again.

For 50 years, the federal government has been forcing fuel economy standards on auto companies. If the average fuel economy of the cars sold in a year exceeded a federal standard, the companies had to cough up enormous penalties.

Passed in 1975 as a way to deal with an energy crisis (that was caused by government price controls), “corporate average fuel economy” (CAFE) standards – required the fleet of cars sold by an automaker to achieve an arbitrary miles-per-gallon goal. If they missed the goal, they paid hefty annual fines.

From the beginning, these standards were a disaster, forcing automakers to radically downsize their fleet, which research showed cost thousands of lives because, all things being equal, smaller, lighter cars are less safe than larger ones.

In fact, a 2002 National Academy of Sciences found that these fuel economy standards not only boosted the cost of cars, but may have caused as many as 2,600 more traffic fatalities just in 1993.

The article notes:

In this first term, Trump rolled the standard back a bit, only to have Joe Biden come in and impose standards specifically designed to force most cars sold to be electric. The standards would have cost automakers billions in fines for failing to meet the fuel-economy targets.

This time around, Trump is again planning to roll the CAFE standards back. But Congress did him one better. Rather than wait for regulators to rewrite the rule, which can take years and be subject be endless lobbying and litigation from various interest groups – lawmakers simply zeroed out the penalty as part of the One Big Beautiful Bill.

Now, if a car company sells cars that, on average, exceed whatever the fuel-economy limit is technically in force in a given year, they pay… nothing. The mandate is still in place, but the penalty is now $0.00. (Republicans pulled off the same trick with the dreaded Obamacare insurance mandate — zeroing out the penalty rather than trying to get the mandate repealed.)

Hopefully this will be the end of the electric Ford Mustang where they have to manufacture the engine growl electronically and the beginning of going back to the real Mustang design with the real growl!