The $5 Billion EV Charging Program Just Hit a Roadblock

The Department of Transportation (DOT) has frozen funding for a $5 billion EV charging infrastructure program, a move that has sent shockwaves through the renewable energy sector. Tesla, which has already pocketed $31 million from the program, is now left in the lurch. Critics are calling the freeze illegal, and it’s just the latest in a series of aggressive actions by the Trump administration to dismantle federally funded renewable energy projects.

“Stopping funding midstream will result in chaos and delays in states across the nation. The only winner from this chaos is the oil industry.”

Beth Hammon, Senior Vehicle Charging Advocate at the Natural Resources Defense Council

What’s at Stake?

The National Electric Vehicle Infrastructure (NEVI) program, part of the Bipartisan Infrastructure Act signed into law in 2021, was set to receive $1 billion annually from 2022 to 2026. By mid-2024, Tesla had secured 6% of all NEVI awards, raking in millions. But now, the Trump administration is pulling the plug, citing a need to “review the policies underlying the implementation of the NEVI program.”

• Chaos for States: State DOT offices are scrambling as funding dries up, delaying critical infrastructure projects.
• Job Losses: Companies that install EV chargers are at risk of laying off workers.
• Oil Industry Wins: Critics argue the freeze benefits fossil fuel companies at the expense of clean energy.

Legal Battles Loom

Legal experts are calling the freeze a constitutional breach. The Trump administration’s Office of Management and Budget has already faced multiple legal challenges for its government-wide spending freeze. While some payment freezes have been rescinded, others continue, creating a patchwork of uncertainty.

“This is an attack on bipartisan funding that Congress approved years ago. It’s illegal and reckless.”

Katherine García, Sierra Club Clean Transportation for All Director

Elon Musk’s Political Tightrope

Meanwhile, Tesla CEO Elon Musk is walking a political tightrope. His company’s mission to accelerate the transition to sustainable energy is increasingly at odds with his political alliances. Musk has been spotted marauding around government agencies with a team of engineers, attempting to wrest control of payment and other sensitive systems. It’s a bold move, but one that raises questions about his priorities.

What’s Next?

The DOT has promised to update NEVI guidance and open it for public comment by spring 2025. Until then, no new funding will flow. But with legal challenges mounting and states in turmoil, the road ahead is anything but smooth.

Bottom line: This freeze isn’t just a setback for Tesla—it’s a blow to the entire renewable energy sector. And with the oil industry poised to benefit, the stakes couldn’t be higher.