16 States Sue Trump Administration for Withholding $2 Billion in Electric Vehicle Charging Infrastructure Funds

After returning to office in January, Trump ordered an end to what he has called Biden's "EV mandate."

Detroit:

Sixteen states and the District of Columbia have filed a lawsuit against the Trump administration, alleging unlawful withholding of over $2 billion in funding designated for two electric vehicle charging programs.

The federal lawsuit, filed Tuesday in Seattle, represents the latest legal confrontation between Democratic-led states and the administration regarding EV charging infrastructure funding. States argue that these funds were congressionally obligated under former President Joe Biden, but are now being "impounded" by the Department of Transportation and Federal Highway Administration.

California Attorney General Rob Bonta stated, "The Trump administration's illegal attempt to stop funding for electric vehicle infrastructure must come to an end. This is just another reckless attempt that will stall the fight against air pollution and climate change, slow innovation, thwart green job creation, and leave communities without access to clean, affordable transportation."

President Donald Trump's administration has demonstrated opposition to electric vehicles, dismantling several Biden-era policies that supported cleaner transportation in favor of approaches aligning with oil and gas industry interests.

When contacted, Transportation Department officials did not immediately provide comment on the matter.

In February, the Trump administration directed states to cease spending on EV charging projects allocated through the bipartisan infrastructure law passed during the previous administration.

Several states filed a lawsuit in May challenging the administration's withholding of funding from the $5 billion National Electric Vehicle Infrastructure program intended for nationwide charging network development. Subsequently, a federal judge ordered the release of substantial funding for chargers in more than a dozen states.

Transportation Secretary Sean Duffy later issued revised guidance aimed at streamlining funding applications and improving charger deployment efficiency. According to Loren McDonald, chief analyst at EV data firm Chargeonomics who monitors state awards, at least four states—Georgia, Illinois, Maryland, and Wisconsin—have announced funding allocations under the vehicle infrastructure program.

Tuesday's lawsuit, filed in the US District Court for the Western District of Washington, specifically addresses the withholding of funds for two additional programs: $1.8 billion for the Charging and Fueling Infrastructure Grant program and approximately $350 million for the Electric Vehicle Charger Reliability and Accessibility Accelerator program.

The legal action is led by attorneys general from California and Colorado, joined by counterparts from Arizona, Delaware, Illinois, Maryland, Massachusetts, Michigan, New Jersey, New York, Oregon, Rhode Island, Vermont, Washington, Wisconsin, the District of Columbia, and Pennsylvania's governor. All are Democrats.

Upon returning to office in January, Trump immediately ordered the termination of what he referred to as Biden's "EV mandate." While Biden had established a target for half of new vehicle sales in the US to be electric by 2030, his policies did not mandate EV purchases by consumers or sales by automakers.

Biden did implement strict tailpipe emissions and fuel economy regulations to encourage broader EV adoption, as the automotive industry would have needed to incorporate more electric vehicles into their sales mix to meet these requirements. Under Biden's administration, consumers could receive up to $7,500 in tax incentives for EV purchases, a program that congressional Republicans terminated last fall.

The Trump administration has proposed rolling back both tailpipe emissions rules and gas mileage standards, while eliminating penalties for automakers failing to meet those standards.

Trump has also circulated inaccurate information regarding the federal charging programs. With funding partially withheld, only a fraction of obligated funds have been utilized thus far.

"We had to have an electric car within a very short period of time, even though there was no way of charging them and lots of other things," Trump stated in a December 3 press conference regarding the proposed weakened fuel economy rules. "In certain parts of the Midwest, they spent -- to build nine chargers they spent $8 billion. So, that wasn't working out too well."

This lawsuit emerges amid regulatory changes and as EV sales growth slows in the US, with mainstream buyers expressing concerns about charging availability and vehicle costs.

According to auto resource Kelley Blue Book, new EVs sold for an average of $58,638 last month, compared to $49,814 for new vehicles overall.

Automakers have adjusted their strategies in response to consumer trends.

Earlier this week, Ford Motor Co. announced a shift away from its once-ambitious, multi-billion dollar electrification strategy, favoring more hybrid-electric and fuel-efficient gasoline-powered vehicles.

In spring, Honda Motor Co. also indicated a significant reduction in its EV development efforts.