New NEVI Guidance Reopens Opportunities for EV Charging Sector

A Shift in the US Electric Vehicle Market Emerges in Late 2025

Despite a challenging start, the year 2025 marks a turning point for the electric vehicle (EV) sector. Dismal early predictions for the US EV market have been replaced by a surge of optimism, thanks to recent events and policy changes.

EV Market Growth and Sales Performance

Data from Cox Automotive reveals a significant upward trend in EV sales during July 2025. New EV sales increased by 26.4% on a monthly basis and by 19.7% compared to the previous year. The number of new EVs sold that month, approximately 130,000, was the second highest ever recorded. Additionally, sales of used EVs also experienced an uptick, scoring a 23% month-over-month and around 40% year-over-year growth.

Federal Funding Resurgence

Alongside buoyant sales data, EV manufacturers can also celebrate recent decisions by the US administration about federal funding opportunities. The reopening of a $5 billion funding program, initially established under the Bipartisan Infrastructure Law (BIL), marks a significant policy shift. This move sparks hope and optimism among developers, owners, and operators of public charging infrastructure.

The NEVI Program: Its Creation and Role

The National Electric Vehicle Infrastructure program (NEVI) was a brainchild of the BIL, approved by Congress and enacted by President Biden in 2021. The BIL allocated billions of federal funding dollars to stimulate EV charging projects. Through the BIL, two programs were devised, one worth $5 billion (NEVI) and another valued at $2.5 billion, with the combined aim of developing a nationwide network of public EV chargers.

The NEVI funding was designed to be distributed based on a formula applied across all states. The program aimed to allocate $1 billion annually for five years. This funding was dedicated to acquiring and installing EV charging infrastructure, maintaining the infrastructure, and data sharing about the infrastructure. The BIL stipulated that no more than 80% of a project’s costs could be covered by NEVI funding; the remaining 20% was to be provided by the private sector.

Implementation and Litigation of the NEVI Program

Upon entering office in January 2025, President Trump halted federal funding, including the NEVI program, through the Unleashing American Energy executive order. This was followed by a memo from the Federal Highway Administration (FHA) stating that the NEVI program was under review and that no new obligations could be made under it, though existing contracts would be upheld.

In response to this funding suspension, 16 states and the District of Columbia filed a lawsuit in May 2025. Subsequently, the US District Court for the Western District of Washington issued a preliminary injunction lifting the funding freeze in relation to the plaintiff states.

Revised Guidance

In response to the injunction, the US Department of Transportation (US DOT) issued fresh interim guidance on August 11, 2025. This updated guidance essentially marked the end of the funding freeze, allowing states to continue developing EV charging stations utilizing NEVI funding.

The new guidance significantly differed from its predecessor, offering a more streamlined approach to NEVI funding eligibility and granting state DOTs far greater discretion in developing their award plans. Although it maintained some elements of the original program, key changes were made, including the removal of proximity requirements between charging stations, the encouragement of awards to project sponsors serving as both the charging station operator and the site host, and providing states with the flexibility to determine when their network is complete, allowing NEVI funds to be utilized on public roads statewide.

Implications for Market Participants

The revised guidance opens up new opportunities for EV market players. The shift to expedite the development of charging stations funded by the NEVI program was confirmed by US Department of Treasury Secretary Sean Duffy, who stated that the revised NEVI guidance “slashes red tape and makes it easier for states to efficiently build out this infrastructure.”

Moreover, the guidance rewards seamless cooperation between charging point operators (CPOs) and site hosts, indicating that such collaborations were seen as key to reducing project delays. The guidance also implies that more funding opportunities are likely to arise, especially for entities that have previously delayed or abandoned funding applications due to the prior guidance’s complexity.