Trump admin pauses funding for EV charging program
More coverage on transportation goals of the new administration:
The Trump administration's new Federal Highway Administration has indefinitely paused funding for EV charging infrastructure under the National Electric Vehicle Infrastructure Formula Program.
The organization issued a memo announcing the suspension of the NEVI Formula Program, which will put a hold on all new NEVI funding approvals, leaving between $885 million and $1.5 billion in funding in limbo while the U.S. Department of Transportation reviews its policies.
Emily Biondi, associate administrator for FHWA’s Office of Planning, Environment, and Realty, wrote:
“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...Since FHWA is suspending the existing state plans, states will be held harmless for not implementing their existing plans. Until new guidance is issued, reimbursement of existing obligations will be allowed in order to not disrupt current financial commitments.”
The NEVI program was originally established to distribute $5 billion in funding over five years to build out a national network of electric vehicle charging stations along designated Alternative Fuel Corridors.
FHWA has rescinded its NEVI guidance documents, wiped the NEVI program webpage clean, and removed the webpage that describes and states’ its EV deployment plans.
Trump targets more climate policies
The NEVI suspension is one of the first major acts under Transportation Secretary Sean Duffy’s DOT. Duffy’s first act after confirmation also targeted climate policies by rescinding fuel economy standards for passenger and light-duty vehicles.
Suspending NAVI funding is part of a flood of actions from the Trump administration against climate policies. The president is pursuing his campaign promise to weaken environmental regulations for industries.
On his first day as president, Trump signed a slew of executive orders that included:
- Ordering federal agencies to “eliminate harmful, coercive ‘climate’ policies that increase the costs of food and fuel.
- Requiring agencies to review all actions that might burden energy development.
- Withdrawing from the Paris Climate Agreement.
- Declaring a “national energy emergency.”
Federal agencies have not yet rolled back policies directly affecting heavy-duty trucks. However, those policies face existential threats. Trump directed the U.S. Environmental Protection Agency to review the final rule that allows the agency to set greenhouse gas standards, threatening the EPA’s GHG authority. Lee Zeldin, EPA’s new administrator, recently vowed to rescind environmental policies targeting the automotive industry and energy production.
Not the president’s first funding freeze
The suspension is not the first time Trump’s new administration interfered with Congressional funding. Two weeks ago, Trump’s budget office ordered a total freeze on all federal agencies’ payments. Two federal judges temporarily blocked the move. District Judge John McConnell said that the order was likely unconstitutional.
“Congress has not given the Executive limitless power to broadly and indefinitely pause all funds that it has expressly directed to specific recipients and purposes,” McConnell said in his order blocking the broad freeze, “and therefore the Executive’s actions violate the separation of powers.”
What's next?
Federally funded charging infrastructure development will slow down for an unknown period.
Courts have not decided whether Trump can postpone the execution of Congressional law. Federal judges’ previous freezes against the budget office were temporary. Lawsuits against FHWA’s suspension will ultimately determine whether the agency can indefinitely postpone the Congressional EV funding. As it is similar to the budget office’s full federal freeze, a judge will likely find FHWA’s order unlawful.
In the meantime, the administration said it would work to replace NEVI’s guidance. In the memo, Biondi said that FHWA might publish a draft guidance document for public comment in the spring. An undisclosed time after the draft’s comment period closes, FHWA would publish its updated final guidance.
Trucking responds
The American Trucking Associations and fuel stop organizations issued statements broadly supportive of the pause.
“We appreciate the Trump Administration’s efforts to evaluate the NEVI Program, and we look forward to working with them to advance a plan that addresses the trucking industry’s needs," Mike Tunnell, ATA's senior director of energy and environmental affairs, said.
David Fialkov, EVP of government affairs for two trade associations representing truck stops and fuel marketers (NATSO and SIGMA), looked forward to how the Trump administration will revise the program.
While the program helped develop charging stations in many states’ truck stops, Fialkov said, “in other states, NEVI has been implemented poorly, with chargers either still not built or, if they are, they’re in places nobody wants to stop. We are encouraged that the Trump administration is reevaluating rather than abandoning the NEVI program and intend to work closely with the administration to share our experience and keep what’s been working, while reconsidering clearly unproductive approaches.”
NATSO and SIGMA previously urged the Biden administration FHWA to introduce new funding requirements to coordinate states’ charging stations.
This article was originally published on FleetOwner.com
About the Author
Jeremy Wolfe
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Editor Jeremy Wolfe joined the FleetOwner team in February 2024. He graduated from the University of Wisconsin-Stevens Point with majors in English and Philosophy. He previously served as Editor for Endeavor Business Media's Water Group publications.