Ricketts Supports Ending CAFE Standards to Lower Automobile Costs for Nebraskan Farmers and Consumers

WASHINGTON, D.C. - U.S. Senator Pete Ricketts (R-NE) joined Senator Crapo (R-ID) and four of his senate colleagues to introduce the Restoring Affordability in Automobile Manufacturing (RAAM Act). This bill would permanently eliminate the Corporate Average Fuel Economy (CAFE) standards. This would increase consumer choice and lower automobile prices for Nebraskans.

Republicans eliminated civil monetary penalties for noncompliance with CAFE standards as part of the Working Families Tax Cuts in July 2025. The Trump administration fully reversed President Biden's CAFE standards by executive order in December 2025. The RAAM Act would permanently eliminate the standards and prevent future administrations from reestablishing these standards or stricter regulations.

"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."

"The Biden-era CAFE standards turned an energy-security program into a de facto electric vehicle mandate, beyond Congress's original intent to improve fuel economy and strengthen our nation's energy security," said Senator Crapo. "Today's CAFE standards distort the automobile market, saddle manufacturers with costly compliance requirements that drive up vehicle costs for hardworking families and do little to shield Americans from the volatility of global oil markets. The RAAM Act would repeal the costly, outdated CAFE program and put consumers-not federal regulators-back in the driver's seat when it comes to vehicle choice."

"From its earliest days, America's automotive industry was a powerhouse of innovation and inspiration," said Senator Scott. "It not only redefined travel and commerce, it helped craft the American spirit and identity of the 20^th century. But like so many other great things in American life, big government got in the way. Decades of overbearing regulations left us with cars that are ugly, underpowered, and undesirable. Repealing CAFE standards will give America the chance to make our cars great again by letting automakers design cars Americans, and consumers across the world, want to buy."

Senators Ricketts and Crapo were joined by Senators Jim Risch (R-ID), Rick Scott (R-FL), Cindy Hyde-Smith (R-MS), and Alan Armstrong (R-OK) for introduction of the bill.

The legislation is supported by the American Petroleum Institute and Americans for Prosperity.

The RAAM Act would eliminate CAFE standards effective model year 2029. Bill text is available HERE.

Background:

Congress enacted the CAFE program in 1975 following the OPEC oil embargo to reduce petroleum consumption, improve fuel economy, and strengthen the nation's energy security.

In recent years, CAFE standards became a partisan tool used by the Biden administration to advance its unpopular, partisan climate change agenda rather than its intended focus of protecting America's fuel and energy security.

The CAFE standard regulations restrict consumer choice, harm U.S. farmers and businesses, and provide a lane for Communist China to infiltrate our automotive industry.

In January 2024, Senator Ricketts signed a letter urging the National Highway Traffic Safety Administration to withdraw the proposed CAFE rule.