A coalition of 15 states, along with the governor of Pennsylvania and the District of Columbia, initiated legal action against executive agencies, accusing them of unlawfully withholding funds intended for electric vehicle (EV) charging station programs. The lawsuit claims the funds earmarked for the “Charging and Fueling Infrastructure Discretionary Grant Program” (CFI) and the “Electric Vehicle Charger Reliability and Accessibility Accelerator Program” (Accelerator) have been unconstitutionally blocked.
These programs were allocated billions under the Infrastructure Investment and Jobs Act (IIJA) with support from Congress and then-President Joe Biden’s administration. However, the lawsuit alleges that the previous administration, led by President Donald Trump, suspended the funding, leaving awardees in the dark as responses from the agencies have ranged from non-committal to entirely absent as reported.
In January, an executive order titled “Unleashing American Energy” was issued, aiming to revitalize the US energy sector. This order directed federal agencies to halt funding to EV programs pending a review, characterizing it as part of an effort to “terminate the Green New Deal” and promote consumer choice. This language generated skepticism among plaintiffs who argued there was never an official federal EV mandate to dismantle in the first place. The plaintiffs assert that this move amounts to “impoundment,” where the executive branch holds funds authorized by the legislative branch, violating separation of powers.
The plaintiffs are seeking injunctive relief, asking the court to release the withheld funds and to prevent further suspension of their distribution. This is not the first legal challenge related to EV funding. In a related case, similar state plaintiffs secured a preliminary injunction against the administration for blocking the National Electric Vehicle Infrastructure Formula Program (NEVI), which was also funded under the Biden administration. This decision by the court, which presides over the current lawsuit, hints at the potential unlawfulness of stopping the funds in question.
NEVI, designed with a $5 billion budget, directly connects to the current dispute as the Accelerator program planned to receive 10% of its funds. Similarly, the independent CFI program was slated to receive about $1.8 billion, highlighting the significance of the disputed allocations.
The outcome of these legal proceedings could have considerable implications for the future of the United States’ EV infrastructure, potentially affecting nationwide efforts to expand electric vehicle accessibility. The ongoing legal friction underscores the complex intergovernmental dynamics impacting policy implementation and the deployment of environmentally significant projects.