Billions in EV Charger Funding at Risk Due to Federal Order

Billions of dollars allocated for fast electric vehicle (EV) chargers along highways are now at risk after the Federal Highway Administration (FHWA) ordered states to pause a $5 billion initiative. This program, which was highlighted by former President Donald Trump as an example of the "Green New Deal," is intended to expand the EV charging network across the country.

A memo from the FHWA, released on Thursday, informs state transportation directors that all plans approved by the Biden administration are suspended until the Transportation Department issues new guidelines in the spring. The memo states, “Effective immediately, no new obligations may occur under the NEVI formula program.”

The order could have significant implications for states that are still working to roll out their public chargers, funded by the grants. Ford Motor Co. warned it might lose up to $5.5 billion this year on its EV and software division, as the market faces slower-than-expected sales.

Currently, only 55 charging stations have been established, according to data from the analytics firm Paren. Loren McDonald, the firm’s chief analyst, commented in an email, “I don't believe FHWA has the authority to do this.” The memo was first reported by InsideEVs.

The National Electric Vehicle Infrastructure program was approved under the Bipartisan Infrastructure Law to help enhance the nation's EV charging network and promote consumer confidence in electric vehicles. Congress also allocated an additional $2.5 billion for chargers in local communities.

States were required to submit detailed plans for using the funds, with approximately $3.3 billion already allocated. However, the recent memo jeopardizes these funds, particularly because states have not received payment unless they submit invoices to the FHWA after achieving key milestones.

The memo indicates that states will continue to receive reimbursement for existing obligations but suggests that any unfinished contracts may be stalled. Trump has been critical of the Biden administration's efforts to promote electric vehicle sales and previously ordered the termination of "the Green New Deal," which included funding for EV chargers.

Some states, such as Rhode Island, Missouri, Alabama, and Oklahoma, had already confirmed pauses to their charger programs prior to the release of the memo. Barbara LaBoe from the Washington State Department of Transportation expressed concern over the impact on the $102 million promised for EV chargers, stating they are awaiting more details on the suspension.

Ryan Gallentine from Advanced Energy United urged state transportation departments to continue with the program until new guidance is provided, while experts warn that fewer chargers could discourage consumers from purchasing EVs in the long term.

As the Trump administration reconsiders car emissions rules, some believe that legal action from states may be forthcoming, adding further uncertainty to the future of EV infrastructure funding.