Trump Administration Suspends NEVI Program For EV Charging Infrastructure
Suspension Of $5 Billion In Funding Disrupts EV Infrastructure Plans, With Legal Challenges Ahead
The Federal Highway Administration (FHWA) under President Donald Trump has issued a directive to immediately suspend the National Electric Vehicle Infrastructure (NEVI) Formula Program, a $5 billion initiative originally established by the Biden administration’s Infrastructure Law to expand electric vehicle (EV) charging stations across the United States (U.S.).
State Plans and Funding Frozen
According to a memo released by the FHWA, states must now halt the implementation of their existing EV infrastructure deployment plans and cannot make any new funding commitments under the program. While previously obligated funds and ongoing construction projects will continue to receive reimbursement, the suspension effectively freezes new developments in the nationwide charging network.
The NEVI program, which had been allocating funds to both Democratic and Republican-led states, was designed to address one of the primary concerns cited by potential EV buyers: the lack of comprehensive charging infrastructure. The program specifically targeted areas along federal highways that might not otherwise support commercial charging stations, with states required to submit annual plans detailing their intended use of federal funds.
Legal Challenges Likely Over Fund Suspension
Legal experts have raised questions about the legitimacy of this suspension. Andrew Rogers, a former deputy administrator and chief counsel of the Federal Highway Administration, stated that there is “no legal basis for funds that have been apportioned to states to build projects being ‘decertified’ based on policy.” The move may face legal challenges, as it potentially violates the Administrative Procedures Act and existing court orders regarding federal funding disbursement.
The impact of this decision extends to various stakeholders in the EV charging industry. Notably, Tesla, whose CEO Elon Musk has recently been leading federal spending audits as head of the Department of Government Efficiency, has received approximately $31 million in NEVI program awards, representing 6% of total allocated funds.
Loren McDonald, principal analyst at Paren, suggests that while the Trump administration’s actions may succeed in temporarily disrupting the program, their authority to permanently halt NEVI is limited. “Only Congress can fundamentally revise and stop the NEVI program,” McDonald explained, predicting that affected states will likely initiate legal action.
Uncertainty as New Guidance is Developed
The FHWA has indicated that new program guidance will be developed under the current administration and will undergo a public comment period, suggesting that the pause could extend for several months. Other federal charging infrastructure initiatives, such as the CFI program, currently remain unaffected by this decision.
With this latest development, it represents a new shift in federal transportation policy, potentially affecting the nationwide transition to EVs and the businesses that have invested in the program’s implementation. As a result, the NEVI program’s careful vetting process for funding recipients means that established businesses with proven track records in charging station construction and operation could face substantial setbacks from this suspension.
Want to learn more about EV? Thinking of buying an EV? Head over to EV.com and discover more.