The Washington Post reports on President Trump's halt on the National Electric Vehicle Infrastructure (NEVI) program, a $5 billion initiative to expand EV charging stations across America. United's Ryan Gallentine urged state transportation agencies and program administrators to continue EV project development until new guidance is finalized.
States trying to build a network of EV chargers are reeling after the Trump administration abruptly ordered a halt to a $5 billion program to build the chargers on highways nationwide.
In a memo released Thursday, the Federal Highway Administration ordered states to halt the National Electric Vehicle Infrastructure program, which President Donald Trump cited as an example of the Green New Deal. So far, states are now split, with some putting their program on pause and at least one planning to continue to fulfill existing contracts.
The letter informs state transportation directors — who are in charge of administering the program — that any plans approved by the Biden administration are now suspended until the Transportation Department provides new guidelines in the spring. “Effective immediately, no new obligations may occur under the NEVI Formula Program,” the letter reads.
The order, which comes as many states are still working to build out their public chargers supported by $5 billion in grants, could strike a major blow to an industry that has experienced slower-than-expected sales and could lose critical federal tax incentives in coming months. On Wednesday, Ford Motor Co. projected it could lose as much as $5.5 billion this year on its EV and software business.
The program, which Congress approved under the bipartisan infrastructure law, was intended to help fill gaps in the nation’s EV charging network and boost consumer confidence to buy electric vehicles. The law also provided another $2.5 billion for chargers in communities and neighborhoods.
States had to submit plans to the Transportation Department on how they would use the funds; once their plans were approved, they could begin building out stations. To date, approximately $3.3 billion has been allocated to states, according to Paren.
But the new memo puts that funding in jeopardy. Even states that have approved plans do not have the money in hand — as part of the program, they send invoices to the federal government after meeting key milestones. “The states don’t get the money that’s been obligated to them until they submit an invoice to FHWA,” McDonald said.
According to the memo, states will continue to receive “reimbursement of existing obligations.” Experts said that indicates states that already have a contract with a charging company will be able to fulfill it — but any unfinished contracts will probably be on hold.
Trump has long railed against what he calls an EV “mandate,” and he criticized the Biden administration’s attempts to create programs to boost electric vehicle sales. In an executive order on the first day of his presidency, Trump ordered the federal government to terminate “the Green New Deal,” “including but not limited to funds for electric vehicle charging stations.” Charging station grants were the only specific clean energy program mentioned in the executive order.
The president has continued to target electric vehicles, even while he maintains a close alliance with Elon Musk, the CEO of Tesla. Tesla has been a key recipient of charging grants, and it has the largest fast-charger network in the country. But Musk has previously said that cuts to EV benefits, such as the $7,500 EV tax credit, will be more painful for the company’s rival automakers than Tesla, even if his company might suffer in the short term.
One of Tesla’s competitors said Americans are still buying electric vehicles despite the shift in Washington. Ford spokesman Marty Gunsberg said in an interview Friday that most of its customers charge at home and rarely use public charging infrastructure, and the company offers a home charger and installation with every electric vehicle it sells.
Ryan Gallentine, managing director at the national business association Advanced Energy United, said that states “are under no obligation to stop these projects based solely on this announcement.”
“We call on state DOTs and program administrators to continue executing this program until new guidance is finalized,” Gallentine added.
Fewer chargers may affect consumer appetite to buy electric vehicles in the long term, said Gil Tal, director of the Electric Vehicle Research Center at the University of California at Davis. But the Trump administration has already dealt a more immediate blow to the EV market, he added — by moving to roll back rules on car emissions that would have effectively required auto companies to make more electric cars.
Some said they believe that the Trump administration’s move may provoke legal action. “I’m assuming the lawsuits from states will start soon, and this will go to court and Congress,” McDonald said. “But the Trump administration will succeed in just causing havoc and slowing things down for a while.”
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