Donald Trump administration halts $5B EV charging infrastructure program
What's the story
The US Department of Transportation (DOT) has suspended a $5 billion electric vehicle (EV) charging infrastructure program, from which Tesla had previously received at least $31 million. The move is seen as part of the Donald Trump administration's broader strategy to cut back on federally funded renewable energy projects. The suspension is being criticized as potentially unlawful and disruptive to the progress of sustainable energy initiatives.
Tesla's involvement
Tesla's significant gains from the now-suspended program
By mid-2024, Tesla had already claimed some 6% of all grants from the National Electric Vehicle Infrastructure (NEVI) program, which is currently under review. This meant millions of dollars in funding for the company. The Trump administration's move to end this national effort is viewed as a reversal of policies encouraging EVs under ex-President Joe Biden's watch.
Policy revision
Review and revision of NEVI program policies
The Federal Highway Administration, a DOT agency, has notified state DOT offices that it plans to "review the policies underlying the implementation of the NEVI" program. The agency plans to revise and release new guidelines for public feedback in spring. Until the new guidelines are finalized, no further funding will be disbursed under this program.
Advocacy response
Advocates warn of potential chaos and job loss
Beth Hammon, a senior vehicle charging advocate at the Natural Resources Defense Council, has criticized the Trump administration's decision. She warned that halting funding midway could lead to chaos and delays across states, disrupt state initiatives, affect companies installing chargers, and jeopardize jobs. Katherine Garcia from Sierra Club echoed these concerns, labeling the action as an "attack on bipartisan funding that Congress approved years ago."
Legal disputes
Trump administration's spending freeze faces legal challenges
The Trump administration's government-wide spending freeze has already been challenged in court several times. Meanwhile, the Federal Highway Administration is also permitting states that have refused to utilize federal funds received under NEVI, to delay implementing their current plans until new guidelines are released.