Department of Transportation Halts Funding for Electric Vehicle Charging Infrastructure

An electric vehicle charging station in Irvine, Calif., on Nov. 28, 2023. John Fredricks/The Epoch Times

A federal program that granted funds to states to build a national electric vehicle (EV) charging infrastructure has been stopped, according to the Federal Highway Administration (FHWA).

The National Electric Vehicle Infrastructure (NEVI) Formula Program allocated $5 billion to states for building a nationwide, interconnected network of DC fast chargers. The program, part of the 2021 Infrastructure Investment and Jobs Act, was a key part of the Biden administration’s push toward net-zero emissions by 2050. Biden had set a goal of having at least 500,000 publicly available EV chargers in the country by the end of this decade.

The FHWA, an agency under the U.S. Department of Transportation (DOT), is suspending the commitment of funds under the NEVI program, the agency said in a Feb. 6 letter sent to directors of state departments of transportation.

The NEVI program mandates states to submit plans detailing how they intend to use the funds. The DOT secretary is required to approve each state’s plan before committing NEVI program funds.

In the letter, FHWA said that all current and prior guidance related to the NEVI program is rescinded.

No funds from the NEVI program will be committed unless fresh guidance is issued and new state plans are submitted and approved. Funds that have already been committed to various projects won’t be affected.

According to FHWA data, an estimated $4.15 billion in funds were allocated to several states under the NEVI program between fiscal years 2022 and 2026, out of which $1.77 billion is estimated for fiscal years 2025 and 2026.

FHWA said the decision was taken to align with current DOT policies, including a Jan. 29 agency order requiring that DOT policymaking be based on “sound economic principles and analysis supported by rigorous cost-benefit requirements and data-driven decisions.”

Trump’s EV Impact

President Donald Trump issued an executive order on Jan. 20 asking agencies to “immediately pause” all funds appropriated via the Infrastructure Investment and Jobs Act.

This includes “funds for electric vehicle charging stations made available through the National Electric Vehicle Infrastructure Formula Program.”

According to a Jan. 23 post by environmental advocacy Natural Resources Defense Council, Trump’s plan to claw back EV charging funds won’t be “that simple.”

“Every state has already engaged with the NEVI program, and the foundation for a nationwide charging network is underway,” the group said. “The legal and practical safeguards built into these programs ensure that they will continue to deliver results, despite political headwinds.”

Trump’s executive order not only impacts the federal charging infrastructure support but also threatens federal incentives handed out for EVs.

Trump’s order calls for eliminating the EV mandate, including “considering the elimination of unfair subsidies and other ill-conceived government-imposed market distortions that favor EVs over other technologies.”

At present, Americans who buy a new qualified plug-in EV or fuel cell electric vehicle are eligible for up to $7,500 in credits.

To be eligible, an individual’s modified adjusted gross income should not exceed $150,000, with the limit rising to $225,000 for heads of households and $300,000 for married couples filing jointly. The vehicle also needs to fulfill certain criteria, such as having a battery capacity of at least seven kilowatt hours and being assembled in North America in the final stages.

The new EV policies come as American interest in electric vehicles appears to be waning.

A September 2024 survey from IT consulting company EY showed that only 34 percent of Americans planned on buying an EV as their next car. This is down 14 percent from the 48 percent in the 2023 EY survey.

“Despite a focus on infrastructure and EV education, consumers cite expensive battery replacement (26%) and concerns about public chargers (25%) as major deterrents to buying an EV,” the survey said.