The Trump administration has made a controversial decision to rescind guidance for a $5 billion program that funds electric vehicle (EV) charging installations nationwide. This move has the potential to halt states’ plans to utilize billions of dollars that have been allocated but not yet spent, putting a stop to crucial infrastructure development. The decision is the latest in a series of attacks on federal climate and clean energy programs that were authorized by Congress during the Biden administration. Experts predict that this decision will likely be challenged in court.
The unexpected news came in a memo from the Federal Highway Administration (FHWA) to state transportation departments responsible for managing the National Electric Vehicle Infrastructure Formula Program (NEVI). NEVI was established by a bipartisan infrastructure law passed by Congress in 2021 to ensure reliable charging infrastructure along major highways across the country. The program guarantees states access to funds under federally approved plans through fiscal year 2026.
The FHWA memo states that the agency is immediately suspending the approval of state plans pending a review by the U.S. Department of Transportation. While states will be allowed to reimburse existing obligations, no new obligations can occur until new guidance is developed and states submit updated plans for approval, a process that could extend through the end of the year.
This decision by FHWA contradicts longstanding practices of granting states access to federal highway spending and goes against the structure of the NEVI program as set by Congress. Environmental advocates have criticized the move, calling it an attack on bipartisan funding that was approved by Congress years ago and has been driving investment and innovation in every state.
Of the $5 billion authorized by NEVI, $3.27 billion has already been obligated to all 50 states, Washington, D.C., and Puerto Rico. Roughly $615 million is under contract for the construction of nearly 1,000 charging sites. Experts believe that changes to the NEVI program of this magnitude would require a change in the law by Congress and that FHWA may not have the authority to halt or revise the program extensively.
Under the Biden administration, funding for the NEVI formula program was allocated through fiscal year 2026, with states’ annual spending plans approved through fiscal year 2025. This funding is tied to approved state plans and contracts, making it challenging to reverse or stop. The new instructions from FHWA create uncertainty for the billions of dollars that states and private companies have invested in urgently needed infrastructure to support America’s highway transportation network. The trade group representing EV manufacturers, charging infrastructure developers, and other companies involved in NEVI-funded projects is facing uncertainty as the future of the program remains unclear. President Donald Trump’s administration issued an executive order demanding a halt to all Biden-era climate and clean energy spending, including the NEVI program. This has led to federal agencies halting the flow of funding, causing outrage among state agencies, nonprofit groups, and companies involved in NEVI projects.
Despite the challenges, significant investments are starting to flow from states to EV-charging manufacturers and charging-network providers. Data as of November tracked 126 operational public charging ports at 31 sites built using NEVI funding. The Biden administration had set a goal to spur the buildout of 500,000 public charging stations by 2030, with the NEVI program playing a crucial role in achieving this goal.
The NEVI program has helped jumpstart investment in high-speed EV charging stations in many states, making it easier for EV owners to find charging stations at gas stations and truck stops. However, since being singled out by the Trump administration, six states have discontinued work on the program, including Ohio, which installed the program’s first live chargers in 2023.
Despite the challenges, the Federal Highway Administration (FHWA) is working to ensure the NEVI program operates efficiently and aligns with current U.S. DOT policies and priorities. The trade group is urging state DOTs and program administrators to continue executing the program until new guidance is finalized. As the future of the NEVI program remains uncertain, stakeholders are closely monitoring developments and advocating for continued support for EV infrastructure development.
