The U.S. Department of Transportation (DOT) has paused funding for a $5 billion electric vehicle (EV) charging infrastructure program, a move that has sparked criticism from industry groups and legal experts who argue the decision is unlawful.
The program, part of the National Electric Vehicle Infrastructure (NEVI) initiative, has already allocated at least $31 million to Tesla, which accounted for approximately 6% of total awards as of mid-2023.
See also: Ford CEO Questions Trump’s Proposed Tariffs on Auto Imports
The suspension follows an executive order signed by President Donald Trump in January, targeting federal charging infrastructure programs, including NEVI. A letter sent Thursday to state DOT directors stated that the agency’s new leadership is reviewing the policies underlying NEVI and will issue updated guidance in the spring. Until then, no new funding will be disbursed, according to the Federal Highway Administration, the DOT division overseeing the program.
The decision has drawn swift backlash from environmental and industry groups. Beth Hammon, senior vehicle charging advocate at the Natural Resources Defense Council, argued that the administration “does not have the authority to halt it capriciously,” warning that the move will create disruptions for states, charger installation companies, and their workers. Katherine García, director of the Sierra Club’s Clean Transportation for All program, called the action an “attack on bipartisan funding that Congress approved years ago.”
See also: Rivian CEO Unfazed by Potential Repeal of U.S. EV Tax Credit Under Trump
The funding freeze is part of a broader effort by the Trump administration to curtail government spending on renewable energy projects. The Office of Management and Budget had announced a government-wide spending freeze, though it later rescinded the memo following legal challenges. Despite this, reports indicate that some funding holds remain in place. As legal experts question the constitutionality of these actions, the EV industry faces mounting uncertainty over the future of federally supported charging infrastructure.