Funding for electric vehicle charging infrastructure is back for some Democratic states. A federal court ruled that the Department of Transportation unlawfully froze funding.
Judge Tana Lin from the Western District of Washington ruled that the DOT exceeded its authority by withholding funds for EV projects. Lin, a former President Joe Biden appointee, stated that the executive branch violated the separation of powers by infringing on Congress’s power of the purse.
The issue revolves around the National Electric Vehicle Infrastructure (NEVI) funding program. This program, part of the 2021 Infrastructure Investment and Jobs Act (IIJA), allocates $5 billion to states for EV charging infrastructure from 2022 to 2026.
In February, the Federal Highway Administration paused EV charging funding while updating guidance. This freeze led 16 Democratic states and the District of Columbia to sue the DOT, claiming it violated the bill’s terms and the intent of Congress.
Lin agreed, stating that actions taken under President Donald Trump’s executive order regarding EV charging funding were unlawful.
However, the unfreezing of funding affects only some states and will start on Wednesday, July 2, unless the federal government files an appeal, which seems likely.
How NEVI funding works
The legal dispute is about the EV charging funding program signed into law four years ago.
Like other formula funding programs, Congress appropriated NEVI funds. FHWA distributes this money using a non-discretionary formula outlined in the law. In this case, a state’s EV charging funding share matches its federal highway funding share. Each year, these funds are legally obligated to states.
Before obligating funding, FHWA updates guidance. States must submit a detailed deployment plan showing how they’ll use the funds. If the plan meets NEVI requirements, FHWA must approve it and allocate the funds.
The federal government can withhold or take back EV funds if a state fails to submit a plan or act on it. If the latter happens, the DOT must notify the state and consult with it first. The state then has 90 days to address concerns. After that, the DOT must give a 60-day notice before withholding funds, allowing the state to appeal.
The DOT failed to follow these procedures.
EV charging funding freeze directive
The funding freeze started with Trump’s promise to eliminate the “EV mandate.”
On his first day back in office, Trump signed an executive order to end the “electric vehicle (EV) mandate” and halt NEVI program funding.
In February, FHWA told states that prior guidance would be rescinded and all deployment plans were suspended. States had to submit new plans once updated guidance was issued, which was expected in the spring.
As of the court ruling, no new guidance had been released. Lin noted that at the current rate, NEVI funding likely won’t be obligated before the end of fiscal year 2025 on Sept. 30.
Democratic states argued, and the court agreed, that FHWA did not follow the proper procedures for withholding funding, including the required 60-day notice and appeal opportunity. Lin ruled that while FHWA can issue new guidance, it cannot freeze plans and funds.
“The language of the IIJA clearly defines the secretary of transportation’s duty to distribute funds under the law and provides the secretary with no room to improvise,” Lin ruled.
The DOT claims this is a temporary pause while awaiting new guidance. However, Lin argued that “the faucet has been turned off,” despite clear laws on how to proceed. She stated that “implementing the pause was an inappropriate seizure of Congress’s budgetary authority.”
The court order prevents the DOT from suspending or revoking approved deployment plans and mandates that it restore previously approved plans. The DOT also cannot withhold funding for those plans.
Lin’s order applies only to the plaintiff states, excluding the District of Columbia, Minnesota and Vermont, which did not show proof of irreparable harm.
The injunction is on hold until Tuesday, July 1 to allow the federal government to appeal. If no appeal is filed, the ruling takes effect on Wednesday, July 2. LL
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