Washington, DC – The US Department of Transportation has issued an order to states to terminate their plans for the National Electric Vehicle Infrastructure program, marking a significant setback to a $5 billion initiative aimed at expanding electric vehicle charging stations nationwide. This decision, revealed in a leaked memo that was later made public, instructs state transportation directors to dismantle their plans that were crucial in identifying locations and strategies for building charging stations, as well as selecting contracting companies.
The program, created under the 2021 Infrastructure Law, was a response to concerns about the insufficient electric vehicle charging infrastructure in the US, a factor that has deterred potential electric car buyers. With more than 30 charging stations already built across the country and hundreds more in progress, the initiative sought to establish chargers along federal highways, particularly in areas lacking financial support for such infrastructure.
The directive from the Federal Highway Administration sets the stage for a new set of program guidelines to be drafted by officials in the previous administration of President Donald Trump, with public input to follow. This process could potentially stall progress on expanding the federally-funded electric vehicle charger network for several months. However, experts argue that this move might be unlawful, potentially conflicting with court orders to resume funding streams to state agencies and violating legal procedures under the Administrative Procedures Act.
The impact of the DOT’s order on existing charging station projects remains uncertain. While FHWA’s instructions suggest a halt on new contracts, reimbursement for ongoing efforts may still be permitted during a program review phase. Billions of dollars have already been distributed under the NEVI program, benefiting states across the political spectrum. Notably, Tesla CEO Elon Musk’s company received substantial awards from the initiative, despite recent federal scrutiny over the funding allocation.
The Trump administration’s broader agenda to target electric vehicles and related programs has raised questions about the future of NEVI projects. Delays in funding disbursement, attributed to meticulous evaluations of company capabilities, have posed challenges for businesses investing in the program. Should NEVI funding face further delays or restrictions, industry stakeholders fear potential setbacks for those already engaged in electric vehicle charging initiatives.