Detroit (AP) – Experts are questioning President Donald Trump’s latest efforts to slow the build-out of US electric vehicle charging
In a letter Thursday night, the Trump administration instructed the states to stop spending money on EV charging in infrastructure. Trump has denounced federal funds for electric vehicle chargers as “an incredible waste of taxpayer dollars.”
Read more: How Michigan’s EV Industry is responding to changes in Trump’s policy
The administration may need Congressional acts for this, and it is unknown if there is. Industry leaders say customer demand will continue to drive growth in charging networks regardless of federal funding.
The Tesla Supercharger network itself, led by Elon Musk, a well-known member of Trump’s inner circle, has received millions of dollars through a program that just stopped. But it also has a massive footprint of chargers across the country. Tesla will continue to expand its network regardless of federal money, but it could benefit from competitors receiving less funds.
What is President Trump trying to do with EV charging?
On his first day in the office, Trump suspended billions of dollars in funding for a nationwide build-out of high-speed electric vehicle chargers allocated to the state through the National Electric Vehicle Infrastructure Program.
The Federal Highways Agency, the U.S. Department of Transportation agency that manages Nevi’s funds, later told the state on Thursday to halt implementation of plans that have new guidelines pending. This is part of a broader effort to dismantle many of the environmental policies and incentives introduced by the Biden administration.
Some states, including Alabama and Rhode Island, had already suspended programs on inauguration day, but Thursday’s directives were a federal force to electrify roads and reduce planetary emissions from transport. It is further driven by the Trump administration to halt government efforts.
Currently, most states running Nevi-funded projects are being reimbursed by the federal government. However, new memos mean that they have projects of works or are currently contracted for them.
Why is this effort important for US EV drivers?
Nevi was created through the Biden administration’s bipartisan infrastructure law passed in Congress in 2021, filling the gap in EV charging infrastructure networks. For example, private companies may not have given out pencils to install chargers along rural highways with low traffic in busy cities, so this funding has led to these neglected areas. It’s an incentive to electrify.
Read more: What’s next for EVS as Trump aims to eliminate Biden-era incentives?
Nevi has also addressed concerns about road trips where many car buyers are far too far from the charging station.
The Nevi Program Awards have said $5 billion over five years, but struggled with delays, complicated electrical upgrades and contract approvals.
Estimates suggest that $3.3 billion in NEVI funds have already left the door to the state.
Legal challenges for charging stations along the highway
The announcement creates uncertainty, said Ryan Gallentine, managing director of Advanced Energy United at the Business Association.
“Most of the unanimated money is ready to be spent on state Department of Transport bank accounts,” Garentine said in a statement. He said the state is not obligated to suspend these projects based solely on the announcement. “We are urging state dots and program administrators to continue running this program until the new guidance is completed.”
Others say that efforts will certainly ensure that a legitimate fight begins.
Andrew Wishnia, former Deputy Director of DOT, who supported the authors of the Nevi program, said there was “no legal basis” to suspend plans that have already been approved and funded.
Anyway, Loren McDonald, chief analyst at Paren, a company that tracks EV charging data, stressed that concerns about the EV range remain. “If you live or work there is no convenient access in between, why do you get an EV? That just makes no sense,” he said.
The money left after the state met its highway obligations was intended to fill other gaps in the claims. It is a low-rate area with a low-income area or areas with many apartments that people find difficult to claim.
What’s next for highway EV charging?
Federal build-outs are not the only effort to build EV charging across the country. Private companies have collectively spent billions on this infrastructure.
Industry leaders say the demand from drivers for EV chargers will drive businesses to build more businesses. “I think the trend will continue. Bassem Ammouri, Chief Operating Officer of EV Connect, a leading EV charging platform, said:
Surveillance: Demand for electric vehicles is growing, can we maintain a charging network?
The fear of some people is that delaying critical charging infrastructure could have a domino effect on EV migration, as sales could be slower, says nonpartisan groups. said Matt Stevenslich, director of the Electrification Union’s program.
“As the world is moving towards electric vehicles, slowing speeds will further slow the US automotive industry,” Steven Srich said.
