Trump DOT freezes EV charger funding, demands latest state plans

• DOT to review $7.5B federal EV charging program, funded with 2021 Bipartisan Infrastructure Law
• Keeps funding projects in progress but rescinds guidance for continued buildout
• Means latest state proposals for rules not yet released, months of delay for states’ funding
• Tesla has captured greater than $41 million in government money for the buildout

The Trump Administration is stalling on dispersing more funds to U.S. states for the Biden Administration’s electric vehicle charging infrastructure program—one which Tesla has profited from handily.

The National Electric Vehicle Infrastructure (NEVI) Formula Program calls for 500,000 charging stations nationwide, and was funded with $7.5 billion under the 2021 infrastructure law to make that occur. That total was split into $5 billion for a highway-based program, and $2.5 billion for rural and underserved communities, with states submitting proposals to be used of the available funds.

But on Thursday the Department of Transportation (DOT) said it had “decided to review the policies underlying the implementation” of the NEVI program, and was rescinding all previous guidance. That is getting used as an excuse to stop the funding of latest projects.

The DOT stated that “effective immediately, no latest obligations may occur under the NEVI Formula Program until the updated final NEVI Formula Program Guidance is issued and latest state plans are submitted and approved.” Payments will still be made for projects already in progress, though.

“Until latest guidance is issued, reimbursement of existing obligations can be allowed as a way to not disrupt current financial commitments,” the DOT said.

Lawsuits will likely follow to liberate the remaining of the cash, which the DOT is legally obligated to release to projects that meet requirements set out within the infrastructure law. While the DOT can issue guidance to make clear specifics, it may’t contradict the law itself or withhold funds in perpetuity.

As of late Thursday evening, the Federal Highway Administration (FHWA) had also removed NEVI documents from its website. This follows a reported pattern of data being faraway from federal web sites since Trump’s return to office.

Tesla Supercharger

As Elon Musk continues to exert influence on the federal government as a non-public citizen, it’s value noting that Tesla ended up winning many NEVI contracts, so this may have a serious financial affect on the EV company—and a growing conflict of interest. As of January 18, Tesla had captured greater than $41 million in federal funding covering 99 different NEVI sites, based on the Paren NEVI Database.

The Ionna charging network—funded by eight full-line automakers and the most definitely rival to Tesla’s Supercharger network in North America—has also suggested it can look to reap the benefits of the NEVI program.

Even though it picked up speed last spring, NEVI-funded project rollout has been slow because states submitting plans must also take care of individual regulators, utilities, and other bureaucracies. Now that they should submit latest plans, all once more, it’s a serious setback for the buildout—many months, if not years—even when the cash is not actually taken away.