Trump touts his salary donation as his own agency says cheaper cars could cost drivers more in fuel

Trump promotes two savings messages

President Donald Trump used a September 30, 2026, White House event to highlight his presidential salary donations. Two days earlier, the Transportation Department finalized new federal fuel economy standards for passenger cars and light trucks.

The administration says the standards can reduce vehicle costs. NHTSA also says less stringent requirements allow lower fuel economy, which can increase gasoline consumption and owners’ fuel expenses.

The two developments involve different finances. Trump discussed giving away presidential pay, while his administration promoted lower regulatory vehicle costs under standards that can leave drivers buying more fuel.

Trump points to his salary donations

At the White House Hispanic Heritage Month celebration, Trump said, “I’m the only president that donated his salary.” Federal law sets presidential compensation at $400,000 annually.

Trump discussed the donation while speaking about his economic record on September 30. Giving away his presidential salary is a personal financial decision separate from the administration’s automotive regulations.

The car policy centers on federal fuel economy requirements. Transportation officials say the revised standards can reduce vehicle costs by lowering regulatory expenses for automakers and potentially buyers.

Other presidents donated salaries

Trump’s salary statement has historical context predating his presidency. Herbert Hoover, who received a $75,000 annual presidential salary, gave away his presidential pay, including money directed to charitable causes.

John F. Kennedy later donated his $100,000 annual presidential salary to charity. Kennedy came from a wealthy family and had also donated government pay during his earlier public service.

These precedents mean Trump was not the first U.S. president to give away his presidential salary.

Trump documented another donation

Trump also has documented second-term salary giving. On August 6, 2025, he announced that his first presidential paycheck had been donated to the White House Historical Association.

The association provided a specific figure on October 27. It said Trump had contributed $66,000 from his salary since January. First Lady Jacqueline Kennedy founded the nonprofit in 1961.

The organization preserves and shares White House history. It also supports the White House Collection and educational programs. Trump’s contribution provides a documented example of his second-term salary donations.

Fuel economy rules shift direction

The automotive policy became official on September 28, 2026. Transportation Secretary Sean Duffy released the final Freedom Means Affordable Cars initiative, resetting NHTSA Corporate Average Fuel Economy standards.

The rule covers passenger cars and light trucks sold in the United States. It revises standards through model year 2031 and gives manufacturers more flexibility over their vehicle fleets.

CAFE standards regulate the average fuel economy automakers must achieve across covered fleets. The new requirements, therefore, affect efficiency targets for future U.S. cars and light trucks.

NHTSA calculates lower vehicle costs

NHTSA’s analysis provides the main figures behind the administration’s argument for cheaper cars. For model year 2031, the agency estimates $15.3 billion in regulatory cost savings compared with retaining the 2024 standards.

If manufacturers pass those savings to consumers, NHTSA estimates average regulatory costs for a new vehicle would fall by $1,289. The estimate does not guarantee an equivalent price reduction at the dealership.

The Transportation Department rounds the expected reduction to about $1,300 per new vehicle. The savings primarily reflect lower technology costs needed to comply with the revised standards.

Drivers face a fuel cost tradeoff

Higher modeled fuel expenses offset the projected vehicle savings. NHTSA says less stringent standards allow lower fuel economy in some new passenger cars and light trucks.

Lower efficiency means affected vehicles consume more fuel than under the previous regulatory baseline. NHTSA includes those additional fuel purchases in its calculations of consumer costs and benefits.

The agency separately calculates vehicle technology costs and fuel expenditures over the vehicle’s ownership period. Lower regulatory costs can reduce modeled purchase costs, while additional gasoline consumption raises operating expenses for affected drivers.

Fleet fuel economy requirements fall

NHTSA projects manufacturers’ combined CAFE requirements will average about 34.9 mpg in model year 2031 under the final standards. The figure represents a fleetwide regulatory calculation.

Keeping the previous standards would have produced a projected average of about 49.3 mpg. Neither figure represents the EPA fuel economy rating for an individual car, truck, or SUV.

CAFE targets vary with vehicle footprint and manufacturers’ fleet mixes. A vehicle’s EPA window sticker instead provides fuel economy estimates for that specific configuration.

Cars and trucks follow separate paths

Passenger cars and light trucks follow different efficiency paths under the final rule. NHTSA projects an average passenger car requirement of 40.2 mpg in model year 2031. The corresponding light-truck average is 26.4 mpg.

Passenger automobile standards increase by 0.90% annually through model year 2029. Nonpassenger standards increase by 0.51% annually.

Both categories will have their requirements adjusted after vehicle classification changes begin for model year 2030. Standards then increase by 1% for the 2031 model year.

Gasoline consumption increases

NHTSA estimates that the final standards will increase gasoline consumption by 4.6% through calendar year 2050 compared with its no-action regulatory baseline.

The agency still projects fleetwide fuel consumption will decline over time. Technology improvements and the retirement of older, less efficient vehicles contribute to that broader reduction.

The 4.6% figure compares the new standards with the previous regulatory baseline. It does not mean nationwide gasoline consumption will rise 4.6% from current levels.

Crossovers change regulatory groups

Vehicle classification also changes under the final rule. Starting with model year 2030, revised criteria will move many lighter crossover vehicles from the light truck category into the passenger car fleet.

The Transportation Department estimates the regulatory mix could shift from roughly 70% light trucks and 30% passenger vehicles to about 70% passenger cars and 30% light trucks.

NHTSA provided additional transition time after manufacturers raised concerns about the time required to prepare compliance strategies and production plans for the revised classifications.

Automakers lose future credit trading

The final rule changes CAFE credit trading between automakers. NHTSA is ending intermanufacturer trading for credits earned in model year 2028 and later.

Credits earned through model year 2027 remain tradable and can be used for up to 5 model years after generation. A credit earned in 2027 can therefore remain usable through model year 2032.

Automakers retain other permitted credit options under federal law. The transition gives manufacturers time to adjust plans that previously relied on purchasing credits from other companies.

Car dealer pays $137,348.60 after taking servicemen’s leased vehicles, highlighting a separate federal enforcement action involving dealership practices and consumer protections.

New standards take effect in November

SAFE Vehicles Rule III was published in the Federal Register on September 30, 2026. The regulation takes effect 60 days after publication, on November 30.

The rule establishes amended CAFE requirements covering model years 2022 through 2031. Its largest practical effects will fall on future vehicles because several earlier model years covered by the rule have already passed or entered production.

NHTSA projects lower regulatory costs for vehicles under the revised requirements. The same standards permit lower fuel economy than the previous regulatory baseline, increasing projected gasoline use for affected vehicles.

Chinese automakers could build U.S. factories but still face barriers to selling vehicles to American buyers, highlighting how lower compliance costs do not remove separate federal restrictions affecting market access.

Would cheaper cars still feel like a deal if drivers spend more on fuel? Share your views in the comments.

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This slideshow was made with AI assistance and human editing.