'Short-sighted move': 17 states sue Trump admin over $3.3 bn EV funding

Attorneys general from 17 states allege Donald Trump admin unlawfully froze EV charger funds approved under Biden-era law; say only Congress can block the $3.3 billion in infrastructure aid

As many as 17 US states have taken legal action against the Donald Trump administration, accusing it of unlawfully freezing $3.3 billion in federal funding intended for electric vehicle (EV) charging infrastructure, Associated Press reported.

 

The lawsuit, filed on Wednesday (local time), is based on a funding pause that affects a broader $5 billion initiative launched under former president Joe Biden’s Bipartisan Infrastructure Law. The programme was designed to support states in rolling out EV charging stations across the country.

 

Led by California, Colorado, and Washington

 

Attorneys general from California, Colorado, and Washington are leading the legal push. They argue that only Congress has the authority to withhold or cancel the funds, not the Federal Highway Administration. As of now, the US Department of Transportation has not issued a formal response to the suit.

 

 

“These funds were going to be used to shape the future of transportation,” said California Attorney General Rob Bonta, who criticised the decision to revoke the funding as “short-sighted". 

 

  “We won’t sit back while the Trump administration violates the law,” the Democrat added.

 

Federal EV charger network in limbo

 

The halted funds were part of a plan to develop a nationwide network of EV chargers along major highways. While some states had begun implementing their strategies, many others had yet to get started. The effort came to a standstill in February after the Trump administration directed states to stop spending the allocated money.

 

New York, one of the plaintiff states, was slated to receive over $175 million through the programme. State officials estimate that $120 million of that is now frozen.

 

Ongoing challenges in EV infrastructure

 

The rollout of EV charging infrastructure has already been slow due to technical hurdles, such as complex electrical work, delays in securing permits, and difficulty in finding contractors. Despite these issues, many had hoped that the federal funds would give the sector much-needed momentum.

 

Electric vehicles made up about 8 per cent of all new car sales in the US last year. Though the growth rate has recently tapered, interest in EVs continues to rise. A persistent concern for potential buyers is whether sufficient charging stations will be available — particularly in rural communities, apartment complexes, and highway corridors.

 

Tesla benefits despite Musk’s cost-cutting efforts

 

Tesla, the EV giant led by Elon Musk, has also reaped benefits from the federal programme to expand its charging network. Interestingly, Musk has reportedly assisted the Trump administration in efforts to cut federal spending, even as his company remains a beneficiary of the funding in question. 

 

  The legal battle over EV funding comes amid broader political resistance. Congressional Republicans recently passed legislation aimed at preventing California from enforcing its strict vehicle emissions standards. This includes the state’s ambitious goal to ban sales of new gasoline-powered cars by 2035.

 

(With agency inputs)