Trump Administration’s EPA Rollback Could Cut New Car Prices by $2,400

Monday, February 16, 2026 — By Brian Freeman

EPA Deputy Administrator David Fotouhi stated Monday that the Trump administration’s decision to eliminate the Obama-era “endangerment finding” could reduce new vehicle costs by approximately $2,400 per car.

Fotouhi described the move as “the largest action of deregulation in U.S. history,” projecting $1.3 trillion in overall savings and immediate benefits for consumers. He emphasized that the policy change would prevent automakers from producing vehicles that do not align with consumer demand while restoring choice at dealerships to allow families to select models best suited for their needs.

The rollback targets rescinding the Environmental Protection Agency’s 2009 determination that greenhouse gases endanger public health—a finding that has served as the legal foundation for federal vehicle emissions standards for over a decade. Fotouhi argued that current regulations have pressured automakers to prioritize electric vehicles despite low market demand, distorting the broader automotive sector.

“This is why manufacturers lose money on most of the EVs they produce,” Fotouhi said, referencing recent disclosures from Ford Motor Co. about significant losses in its electric vehicle lines. “They make up for that by raising prices on gas-powered vehicles.”

Fotouhi explained that easing emissions mandates would eliminate the need for automakers to offset electric vehicle losses through higher sticker prices on traditional internal combustion engine models. Critics warn that rolling back the endangerment finding would undermine climate change efforts and reduce vehicle emissions, while environmental groups have cautioned the action could face swift legal challenges given past court decisions upholding the EPA’s authority under the Clean Air Act.

Fotouhi maintained that the statute was never intended to regulate global greenhouse gas emissions at the scale implemented recently, calling it a “mismatch” between a 1970s-era law and modern climate policy. He also noted potential consumer benefits beyond price reductions, including the possible removal of automatic stop-start systems that shut off engines at red lights to conserve fuel.

“Manufacturers can feel free to remove that and disable it from new vehicles,” Fotouhi said. “There’s no need for that anymore.” He added that drivers have reported stop-start systems causing increased strain on starters and leading to vehicle stalling in traffic, further underscoring the potential changes ahead.