The Government Accountability Office (GAO) has ruled that the Transportation Department’s decision to pause funding for an electric vehicle charging program initiated by the Biden administration is illegal under a 1974 law. The 1974 Impoundment Control Act restricts a president’s ability to block or ‘impound’ funds appropriated by Congress.
This ruling marks the first time the GAO has rebuked the Trump administration for impounding congressionally approved funds. It bolsters Democrats’ claims that the administration’s freezes on funding across various agencies violate the 1974 law.
The GAO specifically examined Transportation Secretary Sean Duffy’s action to suspend funding for the National Electric Vehicle Infrastructure (NEVI) grant program. This program, part of the 2021 bipartisan infrastructure law, received $5 billion in advanced funding. The Transportation Department’s February memo halted all previous guidance for the program and required states to submit new plans. It also prohibited the department from obligating new funding until the new guidance and plans were approved, although existing project agreements remained unaffected.
The GAO concluded that the Transportation Department is not authorized to withhold NEVI program funds under the 1974 law. It stated that the department must continue to carry out the program’s statutory requirements and suggested that if it wishes to withhold funding, it should propose funds for rescission or legislation to amend the law.
Democrats, including Senate Appropriations ranking member Patty Murray (D-Wash.) and House Appropriations ranking member Rosa DeLauro (D-Conn.), have welcomed the GAO’s decision. They argue that the administration is breaking the law by blocking funding passed by Congress on a bipartisan basis.
In contrast, Republicans have praised Duffy’s move, criticizing the Biden administration for delays in rolling out the funds. A spokesperson for the Office of Management and Budget disputed the GAO’s opinion, stating that the Department of Transportation is appropriately using its statutory authority to review state plans.
The GAO also found that between fiscal years 2022 and 2025, the Transportation Department failed to record its obligation properly, as required by statute, and recommended that the department adjust its accounts accordingly.
