Trump’s FHWA Suspends federal NEVI EV charger program
Trump’s FHWA Suspends NEVI EV Program: What It Means for the Future of EV Infrastructure
In a controversial move, the Federal Highway Administration (FHWA) under former President Donald Trump has ordered a suspension of all state electric vehicle (EV) infrastructure deployment plans under the National Electric Vehicle Infrastructure (NEVI) Formula Program. This unexpected decision has sparked debate, with critics questioning its legality and the impact it will have on the growing EV market in the United States.
The NEVI EV program, part of the Biden administration’s Infrastructure Act, is a $5 billion initiative designed to expand EV charging infrastructure across the U.S. The program provides states with funding to build and improve EV charging stations, supporting the country’s shift towards cleaner transportation.
Each year, states are required to submit their EV infrastructure deployment plans to the FHWA for approval. Under President Biden, the FHWA signed off on plans for four out of five fiscal years through 2025, allowing states to move forward with their projects. However, not all of the allocated funding had been officially committed to EV infrastructure projects before the change in administration.
Trump’s FHWA Suspends New Commitments
A new memo from Trump’s FHWA has ordered a halt on all new obligations under the NEVI program. This means states cannot use approved funds to commit to new EV charging infrastructure projects. However, funds already obligated will not be affected.
“Effective immediately, no new obligations may occur under the NEVI Formula Program until the updated final NEVI Formula Program Guidance is issued and new state plans are submitted and approved.”
This suspension effectively freezes the program until new guidance is issued, leaving states in limbo as they wait for further instructions. Reimbursement of existing obligations will continue, but no new projects can move forward under NEVI funding.
Is This Legal? Experts Say It’s Questionable
Industry experts and legal analysts are already challenging the authority of FHWA to unilaterally pause or halt the NEVI program. According to Loren McDonald, chief analyst at Paren, the FHWA does not have the legal standing to cancel or rescind funding that was already approved by Congress.
McDonald stated:
“I don’t believe FHWA has the authority to pause or rescind any aspect of NEVI. The Trump administration is clearly trying to stop or pause programs like NEVI for as long as they can, but I assume lawsuits from states will start soon, and this will go to court and Congress. In the end, the Trump administration will likely fail, as only Congress can fundamentally revise and stop the NEVI program.”
Many legal experts believe that only Congress has the power to make fundamental changes to a program like NEVI. This suggests that the memo could be challenged in court and potentially overturned.
What Are the Consequences of This Decision?
The suspension of the NEVI program is likely to have serious repercussions for businesses and workers across the country. Companies involved in EV infrastructure, including Tesla, which was one of the largest recipients of NEVI funding, will face disruptions in their expansion plans.
This move could also impact:
- Convenience stores and businesses planning to install EV charging stations
- Local and state governments that had already allocated resources based on approved NEVI funds
- Jobs in the EV infrastructure sector, leading to possible layoffs and slowdowns in growth
Interestingly, the NEVI program played a critical role in the adoption of the North American Charging Standard (NACS). Originally, the program required that charging stations be compatible with multiple vehicle brands, preventing government funds from benefiting only one company. To meet this requirement and access funding, Tesla opened its proprietary charging standard to the industry, allowing other automakers to adopt NACS.
This shift positioned Tesla as a potential leader in the EV charging industry for years to come. However, with the NEVI program now on hold, Tesla’s dominant position in EV charging could be at risk. This is particularly ironic, given that Elon Musk is closely involved with the Trump administration, which has now moved to suspend the very program that helped expand Tesla’s charging network.
While this decision has created uncertainty in the EV industry, it is likely to face legal and congressional challenges. Lawsuits from states and affected businesses are expected, arguing that the FHWA does not have the authority to stop the NEVI program without congressional approval.
In the meantime, this suspension is likely to slow down EV infrastructure expansion in the U.S., affecting EV adoption rates, business investments, and job creation in the clean energy sector.
The suspension of the NEVI program is a significant setback for EV infrastructure development in the U.S. While it may not be legally enforceable, it creates chaos, delays, and uncertainty in a market that was just beginning to gain momentum.
If lawsuits challenge this decision successfully, NEVI funding may be reinstated, but the damage in terms of lost time and economic disruption may already be done. As the situation unfolds, one thing remains clear: the future of EV infrastructure in the U.S. is now more uncertain than ever.
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