Trump Administration Puts Brakes on $5 Billion EV-Charging Program
The Trump administration has made a startling announcement, indicating its intention to withdraw guidance for a $5 billion initiative that supports EV-charging installations nationwide. This move could potentially disrupt state projects that seek to utilize billions of dollars allocated but yet to be spent. The decision marks the latest in a series of actions by the new administration against federal climate and clean energy programs that were authorized by Congress during the Biden administration. Experts believe this decision is likely to face legal challenges.
The surprising turn of events was revealed in a memo released by the Federal Highway Administration (FHWA) on Thursday. The memo was directed at state transportation departments responsible for managing the National Electric Vehicle Infrastructure Formula Program (NEVI). Established by a bipartisan infrastructure law passed in 2021, NEVI aims to ensure the availability of reliable charging infrastructure along major highways across the United States. The program guarantees states access to funds through federally approved plans up to the fiscal year 2026.
In the memo, FHWA stated that it is immediately suspending the approval of state plans until a review by the U.S. Department of Transportation is completed. While states will be allowed to reimburse existing obligations to avoid disrupting current financial commitments, no new obligations can be incurred until new guidance is developed, and states submit and receive approval for their updated plans. This process could extend throughout the remainder of the year.
“This is an attack on bipartisan funding that Congress approved years ago and is driving investment and innovation in every state, with Texas as the largest beneficiary,” said Katherine García, director of the Sierra Club’s Clean Transportation For All campaign. Texas is set to receive nearly $408 million from the program.
State of the EV-Charging Program
According to data from EV-charging firm Paren, of the $5 billion authorized by NEVI, $3.27 billion has already been allocated to all 50 states, Washington, D.C., and Puerto Rico. Approximately $615 million has been earmarked for the construction of nearly 1,000 charging sites across the country. Companies that have incurred expenses under contracts with a state will receive reimbursement, said Loren McDonald, Paren’s chief analyst.
Experts believe that changes to NEVI of this nature would require congressional action and that FHWA lacks the authority to significantly alter or halt the program. The uncertainty created by FHWA’s new instructions poses a challenge to states and private companies investing in critical infrastructure for America’s highway transportation network.
Implications and Future of the Program
The Biden administration had allocated funding for the NEVI formula program through fiscal year 2026, with approved state spending plans in place until fiscal year 2025. The funding structure is closely tied to approved state plans and contracts, making it challenging to reverse or stop.
Despite the new directives from FHWA, states are not obligated to halt their projects based solely on the announcement. Industry experts and advocates are calling on state DOTs and program administrators to continue with the program until new guidance is finalized.
The disruption caused by the uncertainty surrounding the NEVI program comes at a time when substantial investments are being made in EV-charging infrastructure across the country. The Biden administration’s goal of expanding public charging stations to 500,000 by 2030 depends on programs like NEVI to support the installation of chargers in locations where the economics may not yet support widespread EV adoption.
“In many states, the NEVI program helped jumpstart investment in high-speed EV charging stations, getting high-speed chargers at the gas stations and truck stops where millions of drivers already stop every year,” said Ryan McKinnon, spokesperson for Charge Ahead Partnership.
As the situation unfolds, it remains to be seen how the administration’s decision to halt the NEVI program will impact the future of EV infrastructure development in the United States.
