Trump’s attack on Biden-era EV funding creates uncertainty

Tennessee Infrastructure Projects in Limbo Under New Administration

Under Joe Biden’s administration, Tennessee’s rural communities and burgeoning electric vehicle sector received significant federal boosts. With the change in presidency to Donald Trump, the future of these funds is uncertain.

The state received a total of $10.3 billion from the 2022 Inflation Reduction Act (IRA) and the 2021 Bipartisan Infrastructure Law (BIL). The funds were directed towards a wide range of initiatives, including safer roads, a new state forest, historic property preservation, railroad improvements, and energy efficiency grants.

However, Trump’s first executive order called for an immediate halt to funding disbursement under the IRA and BIL, creating uncertainty for these infrastructure and clean energy projects.

The White House Office of Management and Budget issued a clarification, stating that the pause only applies to programs supporting electric vehicles and other clean energy projects that clash with Trump’s policy priorities.

Despite the confusion, a federal judge temporarily blocked part of the Trump administration’s federal grant and loan freeze. This prevents the administration from withholding funds for already granted awards until at least 5 p.m. Feb. 3.

Memphis Congressman Steve Cohen and several other Congress members sought clarity on the funding situation by signing a letter to the OMB, asking for a detailed list of programs affected by the funding pause.

They expressed concern about the impact of the funding pause on ongoing projects and urged for transparency on which programs were receiving funds and which were frozen.

Uncertain Future for Electric Vehicle Industry in Tennessee

Tennessee, particularly its electric vehicle manufacturing hubs, has benefited from a mix of loans, grants, and tax credits aimed at growing the American electric vehicle and battery industry. However, rollbacks may create uncertainty for the industry.

It remains unclear how much funding could be affected by Trump’s order. The Biden administration obligated about 84% ($97 billion) of the IRA’s clean energy grants before Trump took office. However, rescinding programs, such as energy efficiency or electric vehicle tax credits, would require Congressional action.

Adie Tomer, senior fellow at Brookings Metro, expressed concern about the practical implications of the executive order. He noted that halting funding without Congressional support could result in legal challenges.

One unsettling question, according to Tomer, is whether the Trump administration is willing to halt operations mandated by Congress, possibly prompting judicial intervention.

Electric Vehicle Charger Grant Dollars On Hold

Currently, the National Electric Vehicle Infrastructure Program, which allocated billions of dollars for electric vehicle charger installation across the U.S., is in a state of uncertainty. The program allocated $88 million to Tennessee for charger installations over five years.

However, the state’s Department of Transportation (TDOT) is still in the contracting process for the EV charging stations. Beth Emmons, TDOT’s Community Relations Director, stated that they are awaiting the review’s outcome before proceeding with official contracts.

Despite the potential challenges, Tennessee continues to rank highly in terms of potential jobs and investment in the electric vehicle sector. However, the state lags behind in terms of chargers per person, according to an October report.