DETROIT (AP) — Concerns are being raised over President Donald Trump’s recent move to impede the growth of electric vehicle (EV) charging infrastructure in the United States. In a letter issued on Thursday evening, the Trump administration instructed states to cease the allocation of funds for EV charging infrastructure, funds that were initially designated by former President Joe Biden. Trump has criticized the federal funding for electric vehicle chargers as wasteful of taxpayer money. It remains uncertain whether congressional approval will be required for this directive. Despite the federal funding setback, industry experts believe that consumer demand will continue to drive the expansion of the charging network.
The Tesla Supercharger network, spearheaded by CEO Elon Musk, a prominent figure in Trump’s close circle, has previously received substantial funding through the now suspended program. However, Tesla is committed to expanding its network independently, even without federal support, and may still benefit from reduced competition for funds. The motivation behind President Trump’s actions in relation to EV charging remains unclear.
Upon assuming office, President Trump put a pause on billions of dollars earmarked for the nationwide deployment of fast electric car chargers, which had been designated to states through the National Electric Vehicle Infrastructure Formula program. The Federal Highway Administration, a branch of the U.S. Department of Transportation overseeing the NEVI funding, directed states on Thursday to halt their ongoing projects until further guidelines are issued. This move aligns with the broader agenda of rolling back environmental policies and incentives implemented by the Biden administration.
For EV drivers across the country, the implications of this decision are significant. The NEVI program, a component of the Bipartisan Infrastructure Law passed by Congress in 2021, aimed to address gaps in the EV charging infrastructure, particularly in remote areas where the installation of chargers might not be financially viable for private companies. The program also sought to alleviate concerns around the availability of charging stations for long-distance travel. The sudden suspension of the NEVI funding poses challenges for states with ongoing or planned infrastructure projects, leaving them in limbo over the future of their initiatives and potential reimbursements.
Furthermore, regulatory hurdles and delays in permitting have been obstacles faced by states attempting to access the NEVI funds. It is estimated that approximately $3.3 billion in NEVI funding has already been allocated to states, with a significant portion yet to be disbursed. The announcement has created uncertainty for states, with many projects now on hold, awaiting further guidance on the way forward. Ryan Gallentine, a managing director at the business association Advanced Energy United, emphasized the impact of this decision on states ready to utilize the allocated funding for EV charging infrastructure.
“While some are hesitant to halt these projects based solely on this announcement, one individual mentioned, ‘We call on state DOTs and program administrators to continue executing this program until new guidance is finalized.’ Others anticipate that this move is likely to spark legal battles. According to Andrew Wishnia, former deputy assistant secretary for climate policy at the DOT and a contributor to the NEVI program, there is ‘no legal basis’ for stopping plans that have already received approval and funding.
However, Loren McDonald, the chief analyst at Paren, a company specializing in tracking EV charging data, stressed that concerns regarding EV range will persist. ‘If you don’t have convenient access either where you live, work, or in between, why would you opt for an EV? It simply doesn’t make sense,’ McDonald expressed.
Funds that remained after states fulfilled their highway obligations were intended to address gaps in charging infrastructure, particularly in areas with low EV adoption rates, such as low-income neighborhoods or regions with numerous apartment buildings where charging access is challenging.
What lies ahead for U.S. highway EV charging? The federal expansion is not the sole or primary initiative driving EV charging infrastructure across the country. Private companies have collectively invested billions in this area. Industry experts believe that the demand for EV chargers from drivers will incentivize companies to build more of these facilities. Bassem Ammouri, the chief operating officer at EV Connect, a prominent EV charging platform, remarked, ‘I believe the trend will persist. Perhaps there will be a slowdown over the next four years…but progress will continue.’
A concern for some is that delaying crucial charging infrastructure could have a ripple effect on the EV transition, potentially impeding sales growth, as noted by Matt Stephens-Rich, the director of programs at the non-partisan group Electrification Coalition. ‘As the world shifts to electric vehicles, any deceleration will further set back the U.S. auto industry,’ Stephens-Rich cautioned.”
