- Department of Transportation to reassess $7.5B federal EV charging initiative, funded by 2021 Bipartisan Infrastructure Law
- Existing projects to receive continued funding, but new guidelines put on hold
- States face delays in funding due to pending release of new rules for proposals
- Tesla benefits from over $41 million in government funds for charging infrastructure
The Trump Administration is delaying the allocation of additional funds to U.S. states for the Biden Administration’s electric vehicle charging infrastructure program, which has notably benefited Tesla.
The National Electric Vehicle Infrastructure (NEVI) Formula Program aims to establish 500,000 charging stations nationwide, with $7.5 billion allocated under the 2021 infrastructure law. The funding was divided into $5 billion for highway-based projects and $2.5 billion for rural and underserved areas, with states required to submit proposals for fund utilization.
However, the Department of Transportation (DOT) announced on Thursday that it will be “reviewing the policies governing the implementation” of the NEVI program, leading to the withdrawal of previous guidance and halting the funding of new initiatives.
Redirect of FHWA webpage that previously contained NEVI documents from Feb. 6, 2025
The DOT specified that no new obligations can be made under the NEVI Formula Program until updated final guidance is released, causing delays in states’ funding despite payments continuing for ongoing projects.
“Reimbursement for existing obligations will be permitted until new guidance is provided to avoid disrupting current financial commitments,” stated the DOT.
Lawsuits are anticipated to challenge the withholding of funds, as the DOT is obligated to release the remaining money to projects compliant with the infrastructure law. While guidance can be issued to clarify details, it cannot violate the law or withhold funds indefinitely.
By late Thursday, the Federal Highway Administration (FHWA) had removed NEVI documents from its website, aligning with a trend of information removal from federal platforms since the return of the Trump administration.
Tesla Supercharger
With Elon Musk’s influence on the government as a private citizen, it’s notable that Tesla has secured numerous NEVI contracts, impacting the company financially and raising conflict of interest concerns. As of January 18, Tesla had received over $41 million in federal funding for 99 NEVI sites, as per the Paren NEVI Database.
The Ionna charging network, backed by major automakers, aims to rival Tesla’s Supercharger network in North America and is considering leveraging the NEVI program.
Despite gaining momentum last spring, the NEVI-funded project implementation has been sluggish due to states navigating regulations, utilities, and bureaucratic processes. The requirement for states to submit new plans signifies a significant setback in the buildout timeline, potentially delaying progress by months or even years.