Trump Administration Halts Funding for EV Charging Stations
The Trump administration has paused a federal program designed to expand the nation’s network of electric vehicle charging stations. This move puts billions of dollars allocated to states for both current and future projects in limbo, with an uncertain timeline for their resurgence.
In a memo released last Thursday, the Federal Highway Administration (FHWA) informed state transportation directors that the National Electric Vehicle Infrastructure (NEVI) program would be reviewed. While the agency stated that existing contracts would be honored, it also declared that “‘no new obligations may occur under the NEVI Formula Program’ effective immediately.” This effectively holds back about $3 billion that states were expecting to receive for future construction projects, according to data from Atlas Public Policy.
The program, established by Congress in the 2021 bipartisan Infrastructure Investment and Jobs Act, aimed to improve access to charging stations.
Nick Nigro, founder of Atlas Public Policy, expressed optimism that the funding would eventually resume, stating, “But that doesn’t mean that the program is going to be sunset or the funds are not going to be made available again to the states.” He also noted that given the bipartisan support the program received, attempts to overturn it within the executive branch could face legal challenges.
The NEVI program was part of the Biden administration’s initiative to address a significant deterrent for prospective EV drivers: the limited availability of charging stations. The program’s initial objective was to establish a network of highways equipped with EV charging stations every 50 miles, facilitating the nation’s transition away from gasoline-powered vehicles.
The FHWA’s recent decision, however, is not entirely unexpected. During his campaign, then-candidate Trump pledged to curtail EV requirements and incentives, often criticizing the Biden administration’s clean energy policies as an EV “mandate.”
While the NEVI program has faced challenges, including competition from electric utilities and grant design flaws, it has also encouraged investment in charging stations, particularly fast chargers at popular locations. As of now, 56 stations are operational due to the program, with over 900 sites awarded to date. Loren McDonald, chief analyst at Paren, anticipates that several hundred awarded sites are currently under construction and scheduled to open this year. McDonald does not believe the FHWA holds the authority to suspend or rescind any aspect of the NEVI program.
McDonald stated, “The Trump administration is clearly trying to stop or pause programs like NEVI for as long as they can, but I assume lawsuits from states will start soon, and this will go to court and Congress.”
For the Trump administration, the emphasis is on increasing domestic fossil fuel production. On Inauguration Day, Trump invoked the National Emergencies Act to signal a commitment to increased oil drilling.
Tesla, led by Elon Musk (a key Trump advisor), is an NEVI program recipient, having received approximately $31 million in awards, according to data from the Joint Office of Energy and Transportation.
