By Scout Nelson
A group of U.S. senators has introduced the Restoring Affordability in Automobile Manufacturing (RAAM) Act, legislation that would permanently eliminate the Corporate Average Fuel Economy (CAFE) standards beginning with the 2029 model year. Supporters say the bill will lower vehicle prices, increase consumer choice, and reduce costs for farmers and other vehicle owners.
U.S. Senator Pete Ricketts of Nebraska joined Senator Mike Crapo of Idaho and several other lawmakers in introducing the legislation. The proposal follows earlier actions by Republicans that removed civil monetary penalties for companies that did not meet CAFE standards through the Working Families Tax Cuts Act in July 2025. The Trump administration also reversed the previous federal fuel economy standards by executive order in December 2025.
Supporters of the RAAM Act believe permanently ending the standards will prevent future administrations from restoring stricter fuel economy requirements. They argue that the existing regulations increase vehicle manufacturing costs, reduce consumer options, and create additional expenses for farmers and businesses that rely on trucks and other work vehicles.
“Affordability is at the top of minds for Nebraskans,” said Senator Ricketts. “Biden-era fuel regulations impose unfair fuel standards that limit consumer choice and drive-up costs. Last year, Republicans passed the Working Families Tax Cuts Act, which zeroed out these penalties. To prevent future administrations from raising penalties again, I support permanently repealing the Federal Corporate Average Fuel Economy (CAFE) standards. Nebraskans will have more control over the vehicles they purchase, and farmers will no longer have to pay the costs of burdensome regulations. I support the RAAM Act to unleash American energy dominance, lower costs for consumers, and support our agriculture community.”
Senator Crapo said the original purpose of the CAFE program has changed over time and believes current standards increase compliance costs for manufacturers while limiting vehicle choices. Other senators supporting the bill include Jim Risch of Idaho, Rick Scott of Florida, Cindy Hyde-Smith of Mississippi, and Alan Armstrong of Oklahoma.
The legislation has also received support from the American Petroleum Institute and Americans for Prosperity. If approved, the RAAM Act would eliminate CAFE standards starting with model year 2029 and establish a permanent change to federal vehicle fuel economy policy.
Photo Credit: istock-jmichl
Categories: Nebraska, Government & Policy