The Trump administration is putting a stop to a program supporting EV chargers, an initiative that has given Tesla tens of millions of dollars in funding.
The U.S. Department of Transportation’s Federal Highway Administration (FHWA) announced the suspension of multiple grant programs, including the $5 billion National Electric Vehicle Infrastructure (NEVI) Formula Program. The announcement also said that the FHWA is halting the approval of all State Electric Vehicle Infrastructure Deployment plans for the entire fiscal year. Following a review, the updated draft guidance is expected to be published later this spring.
The fallout from the freeze on the EV industry is yet to be seen. A lack of sufficient charging infrastructure remains one of the bottlenecks to wider EV adoption.
Notably, the latest move will also seemingly strike a blow to EV leader Tesla, owned by President Trump’s campaign ally and DOGE head, Elon Musk. The NEVI program has given Tesla $31 million in funding, making it the third largest recipient of the federal initiative.
The NEVI program was initially introduced in 2021 as part of the Biden administration’s $1.2 trillion Infrastructure Investment and Jobs Act. NEVI was intended to be a key component of Biden’s desire to develop a nationwide EV charging network. However, as reported previously by The Dallas Express, the program was criticized for a lack of results. At the time of writing, in May 2024, only eight EV charging stations had been constructed despite the program being announced years prior.
While Trump’s latest actions may indirectly impact Musk, it is not a personal blow from the President. Trump has been busy implementing his campaign promises to slash Federal spending. In fact, Musk has been at the heart of this delivery through his role played in DOGE.
Electric vehicles could face another hurdle. President Trump is reportedly considering removing the $7,500 tax incentive for new electric vehicles, of which Tesla is similarly a benefit car. Despite potentially more economic pain for Tesla, Musk has said he supports eliminating the subsidy.