Trump Admin Halts EV Charging Program Funding Tesla Millions

Federal EV Charging Funding Paused by DOT

The Department of Transportation (DOT) has temporarily suspended funding for a $5 billion electric vehicle (EV) charging infrastructure program. Tesla has already received at least $31 million from this program. Many legal observers believe this action is unlawful.

Trump Administration's Renewed Focus on Renewable Energy Projects

This represents the latest effort by the Trump administration to curtail federally funded renewable energy initiatives nationwide. Prioritizing a rollback of these projects has become a key objective for the president during his initial weeks back in office.

Furthermore, this situation highlights a growing divergence between the political views of Tesla CEO Elon Musk and his company’s commitment to facilitating the transition to sustainable energy sources.

Tesla's Participation in the NEVI Program

By mid-2023, Tesla had secured approximately 6% of all awards from the National Electric Vehicle Infrastructure (NEVI) program. This resulted in the company receiving millions of dollars in funding.

An early executive order signed by President Trump in January specifically targeted charging infrastructure programs, including the NEVI program.

DOT Review of NEVI Policies

A letter dispatched on Thursday to the heads of state DOT offices indicated that the “new leadership of the Department of Transportation” intends to “review the policies governing the implementation of the NEVI” program.

The Federal Highway Administration, the DOT agency responsible for the letter, stated it will revise the guidance for NEVI. Updated guidance will be released for public review in “the spring.”

The DOT has stipulated that no further funding disbursements will occur until the new guidance is finalized. InsideEVs initially reported on the contents of this letter.

Background of the NEVI Program

NEVI was established as part of the Bipartisan Infrastructure Law, which was enacted in 2021. Congress allocated $1 billion annually to the program from 2022 through 2026.

Criticism of the Funding Pause

Beth Hammon, senior vehicle charging advocate at the Natural Resources Defense Council, issued a statement asserting that the Trump administration “does not possess the authority to halt the program arbitrarily.”

She warned that “stopping funding midstream will create chaos and delays across numerous states.” This action could disrupt state-level efforts, negatively impact companies installing chargers, and jeopardize the employment of their workers.

Hammon concluded that the oil industry stands to be the sole beneficiary of this disruption.

Sierra Club's Response

Katherine García, director of Clean Transportation for All at the Sierra Club, also characterized the action as illegal. She described it as “an attack on bipartisan funding that Congress authorized years ago.”

Broader Implications and Concerns

The Trump administration is attempting to impede the disbursement of funds appropriated by Congress across various government agencies. Legal experts contend that this constitutes a significant violation of the constitutional order.

The Office of Management and Budget initially announced a government-wide spending freeze, which prompted several legal challenges. While the memo was subsequently rescinded, reports indicate that some payment freezes remain in effect.

Meanwhile, Musk is reportedly engaging in visits to multiple government agencies. Accompanied by a team of engineers and tech executives, he is seeking access to computer systems containing payment and other sensitive data.