On Feb. 6, 2025, the Federal Highway Administration (FHWA) sent a letter to states that suspended charging infrastructure funding that had been legally allocated to states’ departments of transportation by law. You may remember that the National Electric Vehicle Infrastructure (NEVI) program is a $7.5 billion appropriation passed by Congress in 2021 as part of the Bipartisan Infrastructure Law. The massive infrastructure bill included funding for over 50,000 different infrastructure projects across America. It also included $5 billion in formula funding that is allocated to each state to build out a network of EV charging stations along highways across the country. Up until this letter was issued, states were using these funds for hundreds of EV charging projects in various stages of development across the country. This nationwide EV charging network was intended to make long-distance travel for EV drivers easier and more convenient; building range confidence for EV drivers and enabling more people to drive electric.
How was this suspension put into play?
To ensure charging quality and consistency, the NEVI program requires states to submit an annual plan to be approved by the Secretary of Transportation. The flow of funding to states relies on approved state plans. Additionally, the implementation of the NEVI program relies on official finalized guidance from the Federal Highway Administration.
The FHWA letter to all state Departments of Transportation (DOTs) rescinded the official NEVI guidance and halted all funding to states. FHWA effectively yanked approval for all state plans. Essentially, by withdrawing approval for states’ plans, the administration was able to isolate and impound funding for the buildout of public EV charging infrastructure under the NEVI program. The letter indicates that the FHWA plans to “review the policies underlying the implementation of the NEVI Formula Program,” but it’s clear this is part of a larger strategy to slow or eliminate the buildout of a national charging network.
What does this mean for states?
Put succinctly, it’s causing a lot of chaos for state DOTs. Right now, states are unclear if they can move forward with projects that have completed contracts, solicitations for new projects, and planning for future years. This leaves us all with far too many unanswered questions. How does a state honor a signed contract with a company to install a charger when they may no longer have the funds available via the NEVI program to support the contract? What happens now to all of the electricians, installers, and other people who have been actively working on these projects or were expecting to in the near future?
This funding freeze impacts states differently depending on how far along their projects are and whether funds have been obligated and received from the federal government. States are responding to this suspension differently. Some states, like Arkansas, South Carolina, Vermont, and Michigan, have chosen to put their entire NEVI program on hold. Other states seem to be pressing forward with NEVI projects, like Minnesota, Kentucky, Texas, and Illinois. And it’s changing by the day. Depending on when you read this, some states may have made different choices with their programs. Check out our NEVI tracker map for a more comprehensive look at how states are responding. To our knowledge, it is the only map that is being updated in real-time based on state plans. We also have the map below from Transportation for America that illustrates which states have the most to lose if NEVI funds are taken away.
But what about private investment filling in the gaps?
The NEVI program plays an important role in filling the gaps that private funding alone won’t solve. Stopping the NEVI program risks coverage in underserved communities, including rural areas, that currently have lower levels of EV adoption. Private investment will likely continue to flow to areas that demonstrate a good return on investment. However, in areas with lower EV adoption rates or if a site is deemed challenging for other reasons, it’s not likely to see private dollars anytime soon.
That being said, EV charging deployment has been ramping up quickly outside of the NEVI program. Some large players have major plans. Walmart has been building an EV charging network across its retail locations, and the Ionna network (a joint endeavor between major automakers) is moving forward with its charging deployment plans. Smaller player Revel was just awarded $60 million via a state grant to install EV chargers in New York.
How does this all affect EV drivers across the country?
The good news is that currently, most EV charging takes place at home, not in public. The vast majority of current EV drivers and prospective EV consumers will likely experience no change in their day-to-day activities. If you have home charging, you’ll experience little change unless you’re someone who regularly takes road trips and is waiting on a NEVI site. Most charging needs can still be satisfied at home. For drivers who don’t have access to charging at home, public chargers they already use shouldn’t experience any changes based on this NEVI suspension.
Where it gets tricky is for drivers without home charging access who are hoping to be able to unlock new charging options via NEVI-funded sites or prospective EV consumers in areas currently without public charging. We’re still working to understand exactly which sites will move forward. Beyond the reality of the experience as an EV driver, this change is causing confusion and headaches for states, companies, workers, and current and prospective EV drivers. While the suspension of NEVI funding is a major hurdle, it’s important to remember that the growth of EV charging infrastructure will continue, and EVs are here to stay. We’ll be here to continue to set the record straight and share what we know. We’ll also continue to work hard for you to have access to EVs and charging wherever you live so that everyone can experience the benefits of EVs.
