The U.S. Department of Transportation has paused all federal spending on new electric vehicle (EV) chargers. The move will likely fuel an escalating legal fight over whether the president can refuse to spend money allocated by Congress.
The Moves Behind the Scenes
In 2021, Congress passed and former President Biden signed the Infrastructure Investment and Jobs Act, sometimes called the Bipartisan Infrastructure Law. The law, among many other things, created a $5 billion program to build EV chargers nationwide with federal dollars. That bill named that project the National Electric Vehicle Infrastructure (NEVI) program.
Under NEVI, the Transportation Department sends funds to states, which then distribute them as grants to companies building chargers. Each state must submit a plan for Transportation Department approval explaining how it will use the funds.
It’s not the only effort to build a nationwide charging network. Many private companies, including automakers and electric power companies, are also building charging networks. Some are using their own money to do so. Others are using a mix of their own money and NEVI grants.
On his first full day in office, President Trump signed an executive order that instructed federal workers on what he wanted them to do about energy projects.
One of those orders told them to pause NEVI funding and “review their processes, policies, and programs for issuing grants, loans, contracts, or any other financial disbursements of such appropriated funds for consistency with the law.”
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The Transportation Department did that yesterday by sending a letter to states telling them that every state’s plan has been “rescinded.”
Not a Permanent Halt
The letter states that the department will publish new guidance for states on distributing funds. The department “aims to have updated draft NEVI Formula Guidance published for public comment in the spring.”
When a federal agency wants to change regulations, it must publish a draft for public comments, wait to receive them, and then publish a final rule after making any changes it chooses to make after seeing how the public has received the proposed change.
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This May Not Stop Current Construction
The move will pull funding from future charger construction projects unless the companies involved can provide alternative financing. It will not stop projects that have already begun.
The letter explains, “Effective immediately, no new obligations may occur under the NEVI Formula Program until the updated final NEVI Formula Program Guidance is issued and new State plans are submitted and approved.”
It makes clear that “Until new guidance is issued, reimbursement of existing obligations will be allowed in order to not disrupt current financial commitments.”
That should allow most already-approved projects to proceed. However, the letter tells states they will “be held harmless” if they choose to stop any already-approved projects. So, state governments could halt current construction if they choose to.
Politico reports that “at least six states — Alabama, Oklahoma, Missouri, Rhode Island, Ohio, and Nebraska — have put their NEVI programs on hold.”
Barbara LaBoe, the deputy communications director for the Washington State Department of Transportation, told the Washington Post, “Due to the uncertainty of funding, we held off on making any decisions regarding project awards at this time.”
Ryan Gallentine, managing director at the national business association Advanced Energy United, told the Post states “are under no obligation to stop these projects based solely on this announcement.”
Part of a Larger Fight
Notably, neither the president’s executive order nor the Transportation Department’s letter says they end NEVI funding. Both use the same language, explaining that regulators will review the funding to see if it complies with the law.
The distinction is vital. The pause in NEVI funding comes amid an escalating legal fight over whether the president can not spend money Congress has ordered him to spend.
Last week, Trump briefly ordered a pause in virtually all federal grants. He almost immediately rescinded it in a social media post. However, a social media post is not a legal document. So far, two federal courts have issued restraining orders rescinding the freeze.
Andrew Rogers, former deputy administrator of the Federal Highway Administration, told Politico that this new move “appears to ignore both the law and multiple restraining orders that have been issued by federal courts.”
Impoundment and the Likely Court Fight Over It
The Trump administration has embraced an old, disputed legal concept called “impoundment.” It argues that the president’s responsibility to execute laws passed by Congress means he can decide not to execute them.
Congress made clear in a 1974 law, the Impoundment Control Act, that the president does not have impoundment authority. The White House believes that act is unconstitutional and may be trying to force a Supreme Court ruling over it.
The New York Times explains, “There are reasons to believe that the president wants a legal confrontation over the legality of permanent impoundment.”
For now, the pause in NEVI funding is not permanent. In theory, it will be removed in spring when the Transportation Department publishes new guidance for states.
Most Public Chargers, So Far, Built Without NEVI
If NEVI funding disappears permanently, it could halt many future charger projects. However, most of the public charging network America has today was built without it. The Washington Post notes, “Just 55 charging stations have been built so far” with NEVI funds.
Projects like Tesla’s massive Supercharger network and networks from rival providers like Electrify America and ChargePoint have reached their current size without NEVI funding.
Public chargers will never need to equal gas stations for America to switch to electricity for most of its transportation needs. One recent study found that, in a mature nationwide charging system, 96% of chargers could be in private homes or businesses, with just 4% publicly visible.