DETROIT (news agencies) — Experts are questioning President Donald Trump’s latest effort to slow the electric vehicle charging buildout in the U.S.
In a letter Thursday night, the Trump administration directed states to stop spending money for EV charging infrastructure, funds they were allocated under former President Joe Biden. Trump has slammed federal funding for electric vehicle chargers as “an incredible waste of taxpayer dollars.”
The administration may need an act of Congress for this, and it’s unclear there will be one. Industry leaders say customer demand will continue to drive growth in the charging network, regardless of federal funding.
The Tesla Supercharger network — led by CEO Elon Musk, now a prominent member of Trump’s inner circle — itself has received millions of dollars through the program that was just halted. But it also has a massive footprint of chargers across the country. Tesla will continue expanding its network regardless of federal money — and likely still benefit from its competitors receiving fewer funds.
On his first day in office Trump paused billions of dollars in funding for a nationwide buildout of fast electric car chargers that had been allocated to states through the National Electric Vehicle Infrastructure Formula program.
Then the Federal Highway Administration, an agency of the U.S. Department of Transportation that administers NEVI funding, told states Thursday to stop carrying out their plans pending new guidelines. It’s part of the broader effort to dismantle many environmental policies and incentives put in place by the Biden administration.
Some states, including Alabama and Rhode Island, already had suspended their programs with the Inauguration Day order, but Thursday’s directive is a further push from the Trump administration to halt federal efforts to electrify the roads and reduce planet-warming emissions from transportation.
States that currently have NEVI-funded projects up and running mostly have been reimbursed by the federal government. But the new memo means states with projects in the works, or those currently contracting for them, have to come to a screeching halt, and they don’t know if or when they will be able to proceed and request reimbursement.
NEVI was created through the Biden administration’s Bipartisan Infrastructure Law, passed by Congress in 2021, to fill gaps in the EV charging infrastructure network. For example, before, it might not have penciled out for a private company to install a charger along a rural highway with little traffic versus in a busy city, so this funding is an incentive to electrify those neglected regions.
NEVI also addresses the concern many car buyers have for road trips where charging stations are too far apart.
The NEVI program awards states $5 billion over five years, but they’ve struggled with permitting delays, complicated electrical upgrades and contracting.
Estimates suggest $3.3 billion of NEVI funding had already gone out the door to states.
This announcement creates uncertainty, said Ryan Gallentine, managing director at business association Advanced Energy United.
“Most of the unawarded money is sitting in state Department of Transportation bank accounts ready to be spent,” Gallentine said in a statement. States are under no obligation to stop these projects based solely on this announcement, he said. “We call on state DOTs and program administrators to continue executing this program until new guidance is finalized.”
Others say the effort is sure to start legal battles.
“There’s no legal basis” for stopping plans that have already been approved and funded, said Andrew Wishnia, former deputy assistant secretary for climate policy at the DOT who helped author the NEVI program.
Regardless, Loren McDonald, chief analyst at Paren, a company that tracks EV charging data, emphasized EV range concerns will linger. “If you don’t have convenient access either where you live or where you work or in between, why would you get an EV? It just doesn’t make sense,” he said.
Money that was leftover after states met their highway obligations was meant to fill other gaps in charging: areas where there are low rates of EVs, including low-income areas or areas with a lot of apartment buildings where it hard for people to charge.
The federal buildout is not the only or even the central effort to build EV charging across the nation. Private companies have collectively spent billions on this infrastructure.
Industry leaders say that the demand from drivers for EV chargers will propel companies to build more of them. “I think the trend will continue. Maybe it’ll slow down over the next four years … but it’s going to continue,” said Bassem Ammouri, the chief operating officer at EV Connect, a major EV charging platform.
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