Trump Targets EV Charging Funds: How Tesla Stands to Benefit

President Trump's Actions and EV Charging Funding

President Donald Trump is attempting to suspend financial support for electric vehicle (EV) charging infrastructure through two key programs that have previously benefited Tesla. This development highlights a potential conflict between the political interests of Elon Musk and his company’s stated objective of promoting sustainable energy solutions.

Potential Impact on Tesla

The success of President Trump’s initiative remains uncertain. However, should it succeed, Tesla could face a disruption in funding from two sources it has utilized over the past two years to expand its leading EV charging network.

Executive Order and Funding Pause

Through an executive order issued on his first day in office, President Trump mandated that “[a]ll agencies shall immediately pause the disbursement of funds” originating from programs established by the Inflation Reduction Act and the Bipartisan Infrastructure Law.

Specifically, the order targets the cessation of funding for EV charging stations provided via the National Electric Vehicle Infrastructure (NEVI) Formula Program and the Charging and Fueling Infrastructure (CFI) grant program.

Review and Reporting Requirements

Agencies are required to submit a comprehensive review of their grant, loan, contract, and financial disbursement procedures within 90 days. Agency heads must then present a report to both the Office of Management and Budget (OMB) and the National Economic Council (NEC).

Further disbursement of funds is contingent upon a determination by the OMB Director and the Assistant to the President for Economic Policy that such disbursements align with any adopted review recommendations.

Musk's Stated Mission vs. Trump Administration Policies

Elon Musk has consistently asserted that Tesla’s core mission is “accelerating the transition to sustainable energy.” However, he is now collaborating with a second Trump administration, which has already taken significant steps against sustainable energy initiatives on its inaugural day.

These actions include halting federal leases for offshore wind development, withdrawing the United States from the Paris climate agreement, and attempting to reverse existing Biden administration EV policies.

Recent Funding Awards

Tesla was recently part of a consortium awarded a $100 million grant from the CFI program to develop charging infrastructure for heavy-duty electric trucks in Illinois. The company anticipated receiving approximately $40 million from the group’s initial $126 million request.

Additionally, Tesla has repeatedly applied for around $100 million in CFI funding to establish a truck-charging corridor spanning from Northern California to southern Texas, though these applications have been unsuccessful to date.

Allocation of Funds

Tesla’s Illinois CFI award represents a relatively small fraction of the nearly $2 billion allocated by the Department of Transportation over the past two years. The company has secured a considerably larger share of grants from the NEVI program.

The NEVI program distributes smaller amounts to states, which then utilize these funds to offer grants for building charging infrastructure. By mid-2024, Tesla had secured approximately 13% of all NEVI awards, using these funds to expand its Supercharger network, now accessible to most competing EVs.

Potential for Funding Delays or Stoppages

According to Martin Lockman, a fellow at Columbia Law School’s Sabin Center for Climate Change Law, President Trump could potentially slow or halt future spending from these programs.

This ability may be enhanced if his administration prevails in its anticipated legal challenge concerning the Impoundment Control Act, which restricts the president’s power to obstruct congressionally approved spending.

Legal Considerations

“There’s a lot of wiggle room here, and the Trump administration will certainly do everything that it can to delay spending under these bills,” Lockman stated.

However, it remains unclear whether President Trump can legally impede the funding of contracts already in place.

“People who have contracts today have rights under those contracts, and the President can’t take them away,” he explained.

Potential for Contract Violations

Lockman cautioned that if agencies experience sufficient pressure from President Trump, they might breach the terms of existing contracts—and potentially violate the laws establishing the funding programs—thereby withholding funds.

In such a scenario, entities that have received awards from NEVI or CFI would be compelled to pursue legal action to enforce their contracts.

“If the new administration wants to make people fight for their contracts in court, that would certainly be a huge barrier to building EV infrastructure,” he concluded.