Trump seeks to halt $5 billion electric vehicle charging initiative

The U.S. Department of Transportation announced on Thursday that it will temporarily suspend the approval of states' plans for the National Electric Vehicle Infrastructure (NEVI) program. This decision comes after a memorandum was issued, causing uncertainty over the future of the multi-billion dollar initiative.

The NEVI program, established by the bipartisan infrastructure law passed in 2021, aims to ensure reliable charging along major highways across the country through fiscal year 2026. The program has already seen significant progress, with over $3.27 billion of the $5 billion authorized by NEVI having been obligated to all 50 states, Washington, D.C., and Puerto Rico. Roughly $615 million of these funds is under contract for constructing almost 1,000 charging sites, according to Paren's chief analyst Loren McDonald.

The memo's instructions conflict with longstanding practice of guaranteeing states access to federal highway spending. This move has sparked criticism from experts and advocates, with Katherine García, Sierra Club's clean transportation for all director, stating that freezing these EV charging funds is an attack on bipartisan funding. Kelsey Blongewicz, policy analyst at research firm Atlas Public Policy, echoed similar sentiments last month, expressing concerns about the potential impact on states' plans.

The Trump administration had previously rescinded guidance for a $5 billion EV-charging program, potentially halting states' plans. However, under the Biden administration, NEVI program formula funding was allocated through fiscal year 2026. The Federal Highway Administration had approved states' annual spending plans through fiscal year 2025.

States can reimburse existing obligations but no new obligations can occur until new guidance is developed and states submit and receive approval for their updated plans. According to Beth Hammon, senior EV infrastructure advocate at the Natural Resources Defense Council, the funding tied to approved state plans and contracts makes it nearly impossible to reverse or stop. McDonald stated in a webinar last month that companies under contract for charging site construction will get reimbursed.

Experts suggest that changes in NEVI like this would require a change in the law from Congress. The Department of Transportation's decision to suspend the approval of states' plans pending a review has raised questions about the future of the program and the EV charging infrastructure in the United States. As the situation unfolds, stakeholders and advocates remain hopeful that a resolution will be found to ensure the continued progress of the NEVI program.