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The road to widespread electric vehicle (EV) adoption just hit another legal pothole. Sixteen states and the District of Columbia are once again taking the Trump administration to court, this time over the alleged unlawful withholding of over $2 billion in crucial funding earmarked for two vital EV charging programs.
Filed in Seattle, this federal lawsuit marks the latest chapter in an ongoing saga between Democratic-led states and the Trump administration regarding infrastructure funding. These states argue that Congress, under former President Joe Biden, obligated these funds to them, but the Department of Transportation (DOT) and Federal Highway Administration (FHWA) are effectively ‘impounding’ the money.
California Attorney General Rob Bonta didn’t mince words: “The Trump administration’s illegal attempt to stop funding for electric vehicle infrastructure must come to an end. This is just another reckless attempt that will stall the fight against air pollution and climate change, slow innovation, thwart green job creation, and leave communities without access to clean, affordable transportation.”
A Pattern of Resistance
This isn’t the first time the Trump administration has been accused of obstructing EV initiatives. Since returning to office, the administration has shown clear hostility towards EVs, rolling back several Biden-era policies designed to encourage cleaner transportation in favor of policies aligning with the oil and gas industry. In February, states were ordered to halt spending on EV charging money allocated by the bipartisan infrastructure law passed under the previous administration.
A similar lawsuit in May targeted the withholding of funds from the larger $5 billion National Electric Vehicle Infrastructure (NEVI) program. In that instance, a federal judge ordered the administration to release much of the funding, leading to revised guidance from Transportation Secretary Sean Duffy aimed at streamlining applications. Some states, including Georgia, Illinois, Maryland, and Wisconsin, have since announced awards under NEVI, according to EV data firm Chargeonomics.
The Focus of the New Lawsuit
The current lawsuit, filed in the U.S. District Court for the Western District of Washington, specifically addresses funds for two other critical programs:
- $1.8 billion for the Charging and Fueling Infrastructure (CFI) Grant program.
- Approximately $350 million for the Electric Vehicle Charger Reliability and Accessibility Accelerator program.
The lawsuit is spearheaded by the attorneys general of California and Colorado, joined by a coalition of their counterparts from Arizona, Delaware, Illinois, Maryland, Massachusetts, Michigan, New Jersey, New York, Oregon, Rhode Island, Vermont, Washington, Wisconsin, and the District of Columbia, as well as the governor of Pennsylvania – all Democrats.
Biden’s Vision vs. Trump’s Stance
Upon returning to office, Trump immediately moved to end what he termed Biden’s “EV mandate.” While Biden’s administration aimed for half of new vehicle sales in the U.S. to be electric by 2030, his policies focused on stringent tailpipe emissions and fuel economy rules designed to incentivize EV adoption, rather than outright mandates. Under Biden, consumers also benefited from up to $7,500 in tax incentives for EV purchases, a program congressional Republicans ended last fall.
The Trump administration has since proposed rolling back both tailpipe emissions rules and gas mileage standards, eliminating fines for automakers who fail to meet them. Trump has also made questionable claims about the federal charging programs, suggesting widespread inefficiency and exorbitant costs, despite reports indicating that only a fraction of obligated funds have been spent due to these very impoundments.
Impact on EV Adoption
This legal skirmish unfolds against a backdrop of slowing EV sales in the U.S., where mainstream buyers remain concerned about charging availability and the higher price points of electric vehicles. Last month, new EVs averaged $58,638, significantly higher than the $49,814 for a new vehicle overall.
Automakers are reacting to these market signals. Ford recently announced a shift away from its aggressive electrification strategy towards more hybrid and fuel-efficient gasoline vehicles, a move echoed by Honda earlier this year.
As states battle for critical infrastructure funding, the future of EV deployment in the U.S. remains heavily influenced by political winds and legal outcomes. Whether these billions in withheld funds will finally be released could significantly impact the pace of the nation’s transition to cleaner transportation.
Source: Original Article
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