The Trump administration has put the brakes on a $5 billion program aimed at expanding electric vehicle (EV) charging infrastructure across the United States. The National Electric Vehicle Infrastructure (NEVI) grant program, which was established to provide funding to states for the installation of EV charging equipment, has been halted, according to a memo from the Federal Highway Administration (FHWA).

The move is seen as part of the Trump administration's broader effort to reverse policies implemented by the previous administration, which were designed to promote the adoption of electric vehicles. The NEVI program, in particular, was criticized by Republicans as wasteful, despite its progress in installing EV charging stations across the country.

According to the FHWA memo, the agency is "immediately suspending" the approval of plans to deploy new EV chargers "for all fiscal years" and will no longer approve new funding requests until a new plan is implemented. The agency aims to have updated guidance published by the spring, at which point it will start accepting public comment. After the comment period is closed, it will issue revised guidance that incorporates its responses to public comment.

The decision to pause the NEVI program has significant implications for the EV industry, which has been a key beneficiary of the program. Tesla, in particular, has received $31 million in NEVI funds to install 539 DC fast-charging ports, representing 6% of all funds distributed so far. The pause could also give congressional Republicans enough time to write legislation to rescind funding for the program altogether, which would obviate the need for the administration to follow the process it laid out in the memo.

The NEVI program was established as part of the Inflation Reduction Act of 2022, which aimed to promote the adoption of electric vehicles and reduce greenhouse gas emissions. Despite its slow start, the program had shown significant progress in recent months, with 126 public EV charging ports in operation across 31 NEVI stations in nine states, an 83% increase in open NEVI ports over the previous quarter.

The legality of pausing the program is also an open question, given that the money for it was approved by Congress as part of the Inflation Reduction Act of 2022. The Trump administration attempted to freeze all funding for federal programs, only to rescind the order after a judge ordered it to be paused.

The impact of the pause on the EV industry could be significant, as consumers frequently cite charging anxiety as a major concern about switching to electric power. With the Trump administration's decision, the problem of limited EV charging infrastructure is likely to worsen, which could further dampen EV sales.

Elon Musk, who is leading Trump's efforts to root out waste in the federal government under the umbrella of his Department of Government Efficiency (DOGE), has said he supports eliminating federal incentives for EVs, while also collecting vast sums of taxpayer dollars to expand his company's EV charging network. The irony of Musk's position has not gone unnoticed, and critics argue that his influence on the Trump administration's policy decisions is a clear conflict of interest.

As the EV industry grapples with the implications of the NEVI program's pause, one thing is clear: the Trump administration's war on electric cars continues, and the consequences for the environment and the economy could be severe.