The Trump administration’s war on electric cars continues with the halt of a national program that sends money to states to install EV charging equipment. It was the most recent transfer by President Donald Trump to reverse Biden-era EV insurance policies — at the same time as these insurance policies have personally enriched his prime ally, Elon Musk.
According to a memo from the Federal Highway Administration (FHWA), the National Electric Vehicle Infrastructure (NEVI) program will likely be placed on pause whereas it’s retooled to align with the brand new administration’s priorities (these priorities being more gas guzzlers and fewer EVs). The company stated it’s “instantly suspending” the approval of plans to deploy new EV chargers “for all fiscal years” and can now not approve new funding requests till a brand new plan is applied.
The FHWA stated it goals to have up to date steerage revealed by the spring, at which level it’ll begin accepting public remark. After the remark interval is closed, it’ll concern revised steerage that includes its responses to public remark.
The company can also be giving leeway to these states (most of that are Republican-run) which have declined to spend federal funds already acquired underneath NEVI.
“Since FHWA is suspending the prevailing State plans, States will likely be held innocent for not implementing their present plans,” Emily Biondi, affiliate administrator on the company, writes within the memo to state transportation officers. “Till new steerage is issued, reimbursement of present obligations will likely be allowed with a view to not disrupt present monetary commitments.”
Since his election, Trump has vowed to reverse lots of his predecessor’s pro-EV insurance policies, together with the federal EV tax credit score and new tailpipe emission guidelines that might require automakers to provide extra EVs. The NEVI program, specifically, was usually criticized by Republicans as wasteful, particularly after The Washington Post reported in March 2024 that solely seven charging stations with 38 ports had been opened underneath this system.
NEVI might have gotten off to a gradual begin, however its most up-to-date report for the fourth quarter of 2024 confirmed improved progress. According to the Q4 update, there are 126 public EV charging ports in operation throughout 31 NEVI stations in 9 states, an 83 % improve in open NEVI ports over the earlier quarter. (In Q3, there have been 69 public charging ports in operation throughout 17 NEVI stations in eight states.)
A complete of 41 states have launched at the very least their first spherical of solicitations, as of November 2024. Of these states, 35 have issued conditional awards or put agreements in place for over 3,560 fast-charging ports throughout greater than 890 charging station places.
Since his election, Trump has vowed to reverse lots of his predecessor’s pro-EV insurance policies
That progress is now in danger with the Trump administration rescinding funds for NEVI. The legality of pausing this system is definitely an open query, particularly contemplating the cash for it was authorized by Congress as a part of the Inflation Discount Act of 2022. The Trump administration tried to freeze all funding for federal applications, only to rescind the order after a choose ordered it to be paused.
One other variable is Elon Musk, who’s main Trump’s efforts to root out waste within the federal authorities underneath the umbrella of his Division of Authorities Effectivity (DOGE). Musk has stated he helps eliminating federal incentives for EVs, whereas additionally gathering huge sums of taxpayer {dollars} to broaden his firm’s EV charging community. Tesla has acquired $31 million in NEVI funds to put in 539 DC fast-charging ports, which represents 6 % of all funds distributed thus far, according to a dashboard that tracks the spending.
Barring any authorized challenges, the EV charging trade now should watch for the Division of Transportation to retool this system. The pause may additionally give congressional Republicans sufficient time to jot down laws to rescind funding for this system altogether, which might obviate the necessity for the administration to comply with the method it specified by the memo.
Eliminating federal funding for EV charging would have a major impression on the variety of chargers that get put in and will assist additional dampen EV gross sales. Consumers routinely cite charging anxiety as amongst their prime issues about switching to electrical energy. With at the moment’s order, the Trump administration is basically making that drawback worse.