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Trump Halts Funding to Build More Electric Vehicle Chargers Nationwide

Trump Halts Funding to Build More Electric Vehicle Chargers Nationwide

The Trump administration has suspended new funding for a $5‑billion initiative aimed at establishing a nationwide network of electric vehicle (EV) charging stations. In a letter sent out Thursday, the Federal Highway Administration (FHA) notified state transportation departments that “no new funding obligations may occur” under the National Electric Vehicle Infrastructure (NEVI) program.

The FHA’s directive puts a hold on state implementation plans that had previously granted automatic access to NEVI funds, and it pauses the approval of any new plans that states submit. While states are prevented from initiating new projects under the program, the FHA assured that reimbursement for already approved commitments would continue so as not to disrupt existing financial arrangements.

This decision follows legal challenges that have already pushed the Trump administration to reconsider its broad freeze on federal aid. However, the FHA letter clarifies that states will not be permitted to submit new plans—and thus access additional funds—until the Department of Transportation (DOT) updates its guidance for the NEVI program. The revised guidance is expected to align the program with an order from Transportation Secretary Sean Duffy, which calls for prioritizing funding for communities with high birth and marriage rates, as well as those that enforce federal immigration laws.

Critics anticipate that the funding freeze will spark legal disputes from states that have already engaged in contracts for extensive construction work under the program. Albert Gore, executive director of the Zero Emission Transportation Association, remarked that states might soon seek clarification over the legal boundaries between what was mandated by Congress and the DOT’s recent policy modifications.

NEVI was established as part of the 2021 bipartisan infrastructure law, contributing to a larger $7.5‑billion federal effort to broaden EV charging infrastructure. Now in its third year of a five‑year authorization period, a significant portion of the allocated funds has already been disbursed to the states. Ryan Gallentine, managing director at Advanced Energy United, urged state departments of transportation and program administrators to continue progressing with the projects until the new guidelines are finalized.

The overarching goal of NEVI is to construct a series of rapid charging stations approximately every 50 miles along major highways, a move intended to mitigate the “range anxiety” that many potential EV buyers experience. The program has even succeeded in persuading automakers to standardize charging software and connector types. However, progress has been hampered by delays: the regulatory process took so long that no charging stations were built in the program’s initial two years.

Some states, especially those in rural regions like Wyoming, have criticized the program’s stringent rules. They argue that the mandate to position initial charging stations near interstate highways forces installations in areas that are sparsely populated, which may not serve the needs of local communities. In fact, Alabama announced in January that it would forgo building any EV chargers with NEVI funds.

About 59 percent of the total $7.5‑billion funding pool has already been fully obligated, with strong demand for the remaining $3.3‑billion, according to Gabe Klein, executive director of the Joint Office of Energy and Transportation. Despite the freeze, many states remain committed to advancing their projects as they await the updated program guidance.

The decision to freeze NEVI funding aligns with President Donald Trump’s longstanding criticism of federal initiatives perceived as an “EV mandate.” In an executive order titled “unleashing American energy,” Trump specifically targeted NEVI funds, calling for a suspension of aid from both the Inflation Reduction Act and the infrastructure law. Although two federal courts have instructed the administration to lift the freeze, compliance has been delayed.

NEVI also formed a key component of the Biden administration’s broader strategy to foster the adoption of electric vehicles. This strategy paired billions of dollars in tax incentives for domestic manufacturing and battery production with robust regulatory measures, including stringent emissions and fuel economy standards intended to shift the automotive industry away from gas-powered vehicles.

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