Trump suspends $US5 billion EV charging initiative
TL/DR –
The Trump administration has suspended a $5bn programme aimed at funding the installation of electric vehicle (EV) charging points across the US. The National Electric Vehicle Infrastructure (NEVI) Formula Programme had already paid out around $2bn of the funding before it was halted, leaving $3bn that was expected to be used to continue deploying EV charging points. The funding freeze is part of a larger effort by the Trump administration to stop all support for clean energy projects and policies.
Trump Administration Halts $5 Billion EV Charging Infrastructure Program
The Trump administration has put a hold on a $5 billion program aimed at funding electric vehicle (EV) charging infrastructure across the U.S. A memo issued last week by the Department of Transportation’s Federal Highway Administration (FHWA) signaled the review of the National Electric Vehicle Infrastructure (NEVI) Formula Program, effectively stopping state-level EV charging infrastructure funding.
The memo states that no new obligations can be made under the Program until revised guidance is published, though existing obligations can be carried out. It allows states to opt out without penalization. The $5 billion NEVI Formula Program, established by the 2021 Inflation Reduction Act (IRA), provided states with funds for the continued implementation of EV charging infrastructure.
The program, part of a larger effort to create a nationwide network of EV charging stations, has already distributed around $2 billion, leaving about $3 billion anticipated by states for further EV charging station deployment.
This funding freeze aligns with the government’s broader initiative to eliminate support for clean energy projects and policies. President Trump has dismantled various clean energy and environmental policies, including plans to withdraw from the Paris Climate Agreement and halt offshore wind development. He also plans on revoking the non-existent “electric vehicle mandate” and has the backing of Tesla CEO Elon Musk, who expects his company to benefit from the reduced competition.
While some U.S. states may enact their own plans to uphold these initiatives, the federal government holds significant power to obstruct them. Offshore wind leases and the use of public lands for renewable energy projects, for example, rely on federal approval. States may also face challenges if their policies deviate from the new federal guidelines.
The Trump administration does not legally have the right to withhold funds already approved by Congress for initiatives like the NEVI Formula. The states can potentially challenge the federal administration in court to secure the flow of funding for EV charging infrastructure.
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