The Department of Transportation has paused funding for a $5 billion electric vehicle (EV) charging infrastructure program, a move widely viewed as illegal and sparking controversy. The program, which has awarded at least $31 million to Tesla, is part of the Bipartisan Infrastructure Act signed into law in 2021.
The decision is seen as the latest attempt by the Trump administration to undermine federally funded renewable energy projects across the country. In January, one of the President's first executive orders targeted charging infrastructure programs, including the National Electric Vehicle Infrastructure (NEVI) program in question.
Tesla CEO Elon Musk's politics have increasingly come into conflict with his company's goal of advancing sustainable energy. By mid-2022, Tesla had secured around 6% of all awards from the NEVI program, netting millions of dollars in the process. The pause in funding raises questions about the future of EV charging infrastructure development in the United States.
A letter sent to state DOT offices on Thursday stated that the "new leadership of the Department of Transportation" wants to "review the policies underlying the implementation of the NEVI" program. The Federal Highway Administration, the DOT agency that wrote the letter, said it will update the guidance for NEVI and publish it for public comment in the spring. No new funding can be allocated until the new guidance is finalized.
Environmental groups and experts have expressed outrage over the decision, citing its illegality and potential consequences. Beth Hammon, senior vehicle charging advocate at the Natural Resources Defense Council, stated that the Trump administration "does not have the authority to halt it capriciously." She warned that stopping funding midstream would result in chaos and delays in states across the nation, ultimately benefiting the oil industry.
Sierra Club Clean Transportation for All Director Katherine García also condemned the action as illegal and an "attack on bipartisan funding that Congress approved years ago." The Trump administration's move is seen as part of a broader effort to stop the flow of money appropriated by Congress across the government, a move that legal experts argue is a major breach of the constitutional order.
The controversy surrounding the funding pause comes as Elon Musk is reportedly working with a team of engineers and tech executives to gain access to government payment systems. The move has raised concerns about the potential for abuse of power and the erosion of democratic institutions.
The implications of the funding pause are far-reaching, with potential delays and disruptions to EV charging infrastructure development across the United States. As the country continues to transition towards sustainable energy, the controversy highlights the need for stable and consistent policy support to drive innovation and progress.