The newly installed Trump administration remains in an aggressive battle against sustainability efforts: it decided to suspend a five billion dollars program aimed at financing the installation of electric vehicle (EV) charging infrastructure nationwide.
In a memorandum published late last week, the Federal Highway Administration (FHWA) of the Department of Transportation (DOT) informed states that the National Electric Vehicle Infrastructure (NEVI) Formula Program would be placed under review, effectively halting funding for state-level EV charging infrastructure.
According to the memorandum, “no new obligations may be incurred” under the program until revised guidance is issued.
While existing obligations will still be honored, the memorandum provides an option for states wishing to opt out, stating that they “will not be held accountable for failing to implement their existing plans.”
What Was the Charging Infrastructure Program?
Originally approved by Congress as part of the Inflation Reduction Act (IRA) of 2021, the five billion dollars NEVI Formula Program provided funding to states to support the continued deployment of EV charging infrastructure.
Designed as part of a broader effort to establish a nationwide interconnected network of EV charging stations to further support electric vehicle adoption, the program had already distributed approximately two billion dollars.
This leaves around three billion dollars that states had assumed would be available to continue rolling out EV charging stations.
The funding freeze is part of a clear policy by Donald Trump to eliminate all support for clean energy projects and policies.
Donald Trump’s “War” on Electric Vehicles
The president has already made a significant impact on the government’s environmental and clean energy policies, including preparations to withdraw from the Paris Climate Agreement, halting offshore wind energy development, and resuming plans for oil and gas drilling, as reported by thedriven.io.
He has long planned to “repeal the EV mandate,” a reference to the federal electric vehicle tax credit available for new car purchases.
To that end, he has the backing of Tesla CEO and close advisor Elon Musk, who believes his automotive company would benefit from reduced competition, both in the EV market and the charging network sector.
While many U.S. states will likely implement their own plans to continue with some of these initiatives, the federal government has significant power to make that process more difficult.
For example, offshore wind energy leases and the use of public lands for renewable energy projects depend on federal approval.
Similarly, the U.S. government could attempt to block state policies that diverge from the new administration’s stance—an issue that California will likely face in the near future, given its EV mandate and clean energy policies.
However, the administration does not strictly have the legal authority to withhold funds that have already been allocated by Congress for projects like the NEVI Formula Program.
As a result, states seeking to secure funding for EV charging infrastructure may challenge the federal administration in court, potentially unlocking funds if the Department of Transportation attempts to cancel any future allocations.
