- Transport officials are halting approval for new EV chargers funded by the $5 billion NEVI program.
- It’s the latest sign Trump is going after federal EV initiatives, including those benefiting Tesla.
- Elon Musk’s automaker has received $31 million in funding from the NEVI program.
Donald Trump’s administration is halting a funding program for EV chargers that has awarded Tesla millions in federal grants.
Officials are “immediately suspending” approval for all state plans funded by the National Electric Vehicle Infrastructure (NEVI) program, a $5 billion initiative to build a network of EV chargers across the US, according to a memo to state transport directors released on Thursday.
The memo said leaders at the Transportation Department had “decided to review the policies underlying” the implementation of the NEVI program, with updated draft guidance due to be published this spring.
Until then, “no new obligations may occur” under the NEVI program, a move which puts plans to build EV chargers across multiple states announced late last year into limbo.
With the scarcity of EV chargers still one of the main concerns putting people off buying electric vehicles, the dismantling of the program will likely be a major blow for EV adoption in the US — and for Tesla, which has been one of NEVI’s biggest beneficiaries.
The Elon Musk-run automaker has received $31 million in funding through the NEVI program, according to a dashboard run by transportation officials, making it the third largest recipient of funds.
Introduced as part of the $1.2 trillion Infrastructure Investment and Jobs Act in 2021, the NEVI program was a key pillar of the Biden administration’s plan to build a national network of EV chargers.
Trump, by contrast, has vowed to roll back the “EV mandate” and scrap federal support for electric vehicles.
The new president signed an executive order on the first day of his second term ordering an immediate pause of the distribution of funds under the NEVI program.
Further measures could also have a major impact on Tesla, which is the largest seller of EVs in the US, with Trump’s team reportedly considering scrapping the $7,500 tax incentive for new electric vehicles.
Tesla benefits directly from the tax credit and recently began advertising the Cybertruck with the discount.
That hasn’t stopped Elon Musk, who has taken a prominent role in the Trump administration and is one of the president’s most outspoken supporters, from saying he supports the move.
The billionaire has argued that ditching the tax credit would be a “long-term” positive for Tesla but would “devastate” the company’s rivals, which make up the rest of the EV industry.
Uncertainty over the EV future
The rollback of federal support for new EV chargers is already causing uncertainty on the ground in some areas.
EV charging startup SWTCH was awarded over $1 million in federal funding from the Joint Office of Energy and Transportation to deploy electric vehicle chargers at multifamily properties in Puerto Rico.
Josh Cohen, SWTCH’s head of policy, told Business Insider last week that the company received an email three days after Trump’s inauguration from the Department of Energy saying leadership had “placed a hold” on the project until further notice.
“It’s creating a lot of uncertainty for families and small businesses that are looking toward the government for reliability and predictability,” said Cohen, who added that he expected the project to eventually move forward.
The suspension of NEVI will add to that uncertainty. A spokesperson for the Charge Ahead Partnership, a coalition of fuel providers advocating for improved EV infrastructure, said that while the initiative had its flaws, it still drove investment in high-speed EV chargers in many areas.
“While it is clear that NEVI didn’t solve the industry’s challenges, the program was a step in the right direction,” they said.
Tesla did not respond to a request for comment, sent outside normal working hours.
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