Federal judge lifts first Trump administration's freeze on $1B in EV charging funds

Federal judge lifts first Trump administration's freeze on $1B in EV charging funds

A federal judge on Tuesday issued a preliminary injunction lifting the first Trump administration's freeze on nearly $1 billion in electric vehicle (EV) infrastructure funding, calling the freeze "unlawful" and clearing the way for major progress in clean transportation.

In a ruling from the U.S. District Court for the Western District of Washington, Judge Tana Lin sided with 14 states and a coalition of environmental groups, ordering the release of federal dollars under the National Electric Vehicle Infrastructure (NEVI) Formula Program.

In her 66-page decision, Judge Lin wrote that the Trump administration's decision to withhold NEVI funding lacked legal authority, and the plaintiffs demonstrated a likelihood of success on the merits. She also noted that the balance of equities and public interest weighed in favor of granting preliminary relief.

"When the Executive Branch treads upon the will of the Legislative Branch, and when an administrative agency acts contrary to law, it is the court's responsibility to remediate the situation and restore the balance of power," Lin wrote. "Such remediation and restoration are what the court undertakes herein."

She explained that in the enacted 2021 Infrastructure Investment and Jobs Act (IIJA), Congress appropriated $5 billion to fund the NEVI Formula Program with the purpose "to strategically deploy electric vehicle charging infrastructure and to establish an interconnected network to facilitate data collection, access, and reliability."

Congress then directed the U.S. Secretary of Transportation to distribute the money to the states and the District of Columbia between 2022 and 2026.

"Plaintiff states, relying on the IIJA, made plans to utilize their share of the NEVI Formula funds. States dedicated resources to EV infrastructure. They lined up private-sector partnerships, solicited bids on construction projects, and identified and secured sites where EV infrastructure would be built. They prepared to put Congress's new multi-billion-dollar program to work for their residents," wrote Lin.

But in a Jan. 29 executive order, the new Trump administration "determined that its Secretary of Transportation would disregard Congress's mandate," she wrote.

Rather than distribute the program funds as Congress commanded, the Department of Transportation (DOT) decided to immediately pause the disbursement of funds appropriated through the IIJA, including but not limited to funds for EV charging stations made available through the NEVI Formula Program, according to the decision.

On Feb. 6, "The NEVI Formula Program, in essence, was frozen," wrote Lin. "Congress had directed the secretary to distribute billions of dollars in NEVI Formula funds to the states, but now, under the president's direction and for impermissible reasons …, he was (and is) refusing to do so."

Sixteen states plus D.C. sued DOT, the Federal Highway Administration (FHWA), and the highest-ranking official from each of the two agencies, asserting that the action represented an unlawful seizure of legislative authority under the separation-of-powers doctrine enshrined in the United States Constitution and an overextension of executive authority beyond what is permitted by law.

On May 22, a group of nonprofits — the Sierra Club, Climate Solutions, Earthjustice, the Natural Resources Defense Council, Plug In America, the Southern Alliance for Clean Energy, CleanAIRE NC, the West End Revitalization Association, and the Southern Environmental Law Center — joined the case, citing urgent needs among their members and the broader public.

Lin determined that in effectively suspending the NEVI Formula Program, "the defendants have overstepped their Constitutional and statutory authority and have attempted to override the express will of Congress."

Specifically, Lin's ruling impacts 14 states that challenged the funding freeze: Washington, Oregon, California, Colorado, Arizona, Delaware, Hawaii, Illinois, Maryland, New Jersey, New Mexico, New York, Rhode Island, and Wisconsin.

The groups on Wednesday released a joint statement applauding the judge's ruling.

"The administration's freeze on funding for electric vehicle charging is illegal," they said. "This decision underscores just how clearly it violates the law. Our organizations are pleased to see Judge Lin's decision to restore funding for anyone wanting clean and affordable transportation in these 14 states."

They also cautioned that the fight is not over.

"This is only a first step. We seek the full, nationwide restoration of NEVI funds so everyone can have the option to go electric, no matter where they live, work, or travel," according to their statement. "Many communities that currently lack access to EV charging stations are the same ones already overburdened with air pollution from transportation. Slowing the transition to EVs only prolongs the harm these communities face."

The groups also pointed out that unfreezing the NEVI funds is essential for advancing clean, equitable, and more affordable transportation, reducing vehicle pollution, and protecting public health, "which is why full implementation of the program is so important."