Trump Administration Orders States to Halt NEVI Program

The Trump administration has issued a memo to state transportation directors, instructing them to stop a program to build fast electric vehicle (EV) chargers on highways throughout the country. The National Electric Vehicle Infrastructure (NEVI) program, approved by Congress as part of the Bipartisan Infrastructure Law, aimed to fill gaps in America’s EV charging network and was supported by $5 billion in grants.

Background on the NEVI Program

The NEVI program was designed to support states in building fast EV charging stations, with the goal of increasing the adoption of electric vehicles. The program was authorized by Congress, and the Biden administration had already approved plans for the program. However, President Trump has long been critical of the program, and during his 2024 campaign, he frequently misstated the specifics of the program.

Trump’s Misstatements about the NEVI Program

Trump has claimed that the NEVI program costs $9 billion to build eight EV charging stations, which is significantly higher than the actual cost. In reality, 55 charging stations have been built so far, with over $2 billion allocated to states. Just over half of the allocated funds have been spent, with much of it still unspent.

Impact of the Trump Administration’s Decision

The Trump administration’s decision to halt the NEVI program will likely have significant consequences for the adoption of electric vehicles. The program was designed to support states in building fast EV charging stations, which are essential for widespread adoption of electric vehicles. By halting the program, the Trump administration is effectively slowing down the transition to electric vehicles.

Legal Challenges to the Trump Administration’s Decision

The legality of the Trump administration’s decision to halt the NEVI program is unclear. Loren McDonald, chief analyst at the EV charging analytics firm Paren, has stated that the Federal Highway Administration (FHWA) does not have the authority to unilaterally put the program on hold. Ryan Gallentine, managing director at the national business association Advanced Energy United, has also stated that states are under no obligation to stop the projects based solely on this announcement.

Court Challenges and Congressional Action

The Trump administration’s decision is expected to be challenged in court, with lawsuits from states likely to follow. McDonald has stated that the lawsuits will likely go to Congress, where the Trump administration will likely succeed in slowing down the transition to electric vehicles. However, it is unclear whether the Trump administration’s decision will ultimately prevail.

Impact on Elon Musk and Tesla

The Trump administration’s decision to halt the NEVI program is unlikely to have a significant impact on Elon Musk and Tesla, as the company has already received $31 million in grants from the program. Musk has long supported the elimination of the federal tax credit for electric vehicles, which would harm competitors. The halt of the NEVI program is unlikely to affect Tesla’s business significantly.

Conclusion

The Trump administration’s decision to halt the NEVI program is a significant setback for the adoption of electric vehicles. The program was designed to support states in building fast EV charging stations, which are essential for widespread adoption of electric vehicles. The halt of the program will likely slow down the transition to electric vehicles and has significant implications for the environment and the economy.