The Government Accountability Office (GAO) has ruled against the Transportation Department (DOT) and its component agency, the Federal Highway Administration (FHWA), over a February memorandum that aimed to halt spending on a Biden-era grant program to develop electric vehicle charging infrastructure.
The GAO determined that the February 6 memo from the FHWA, which canceled guidance for the National Electric Vehicle Infrastructure Formula Program and suspended grant plans submitted by states and Puerto Rico, violated the Impoundment Control Act (ICA) by withholding funding appropriated in the 2021 Infrastructure Investment and Jobs Act (IIJA).
Key Findings
The GAO’s decision highlighted two main violations:
- The DOT violated the recording statute by not correctly recording the funds as an obligation when they became available.
- The department violated the ICA by not having the president transmit a special message to Congress regarding the intention to either temporarily withhold the funds or terminate the program.
Background
The NEVI Formula Program allocated $5 billion in appropriations between fiscal 2022 and 2026, with 10% to be distributed as grants to states and localities to help them deploy EV charging infrastructure. States were required to submit plans to the Transportation Secretary outlining how they intended to use the funds each fiscal year.
Implications
The GAO’s ruling means that the DOT is not authorized to withhold the NEVI Formula Program funds and must either notify Congress of a proposed rescission or offer new legislation to change the IIJA. The decision emphasizes that the president may not withhold funding required by law to be spent.
Carten Cordell, Managing Editor at Government Executive, reported on the GAO’s decision, highlighting the implications for the Transportation Department and the future of the NEVI Formula Program.
