US States Challenge Federal Suspension of EV Funding Programs

Several US states and the District of Columbia have filed a lawsuit against the federal government after the Trump administration suspended two congressionally approved grant programs for electric vehicle (EV) charging infrastructure. 

The lawsuit, filed Tuesday by 16 states, is led by the attorneys general of California, Washington, and Colorado. It challenges the Department of Transportation’s decision to halt approval of new funding under two EV infrastructure programs created by Congress as part of the US$1 trillion infrastructure law signed in 2022. 

“This is just another reckless attempt that will stall the fight against air pollution and climate change, slow innovation, hinder green job creation, and leave communities without access to clean, affordable transportation,” said Rob Bonta, Attorney General, California.

One of the suspended programs allocates US$2.5 billion to states and cities for EV charging and hydrogen fueling infrastructure. The lawsuit contends that the administration’s actions have placed US$1.8 billion in federal awards at risk, affecting dozens of state and local governments and rendering most of the funds inaccessible. The Department of Transportation did not immediately comment on the lawsuit.

The group of plaintiffs includes the attorneys general of Arizona, Delaware, Illinois, Maryland, Massachusetts, Michigan, New Jersey, New York, Oregon, Rhode Island, Vermont, Washington and Wisconsin, as well as the District of Columbia. The governor of Pennsylvania has also joined the action. The case builds on prior legal precedent. In June, a US judge blocked the administration from withholding funds already awarded to 14 states under a separate US$5 billion electric vehicle charging infrastructure program approved in 2022.

The suspension of charging programs is part of a broader policy shift by the Trump administration targeting electric vehicles. In June, the president signed a resolution of disapproval under the Congressional Review Act to block California’s plan to end the sale of gasoline-only vehicles by 2035, along with two related vehicle emissions rules. The administration has also ended the US$7,500 federal tax credit for electric vehicles and proposed reducing fuel economy standards finalized under the previous administration, moves intended to ease compliance requirements for automakers selling internal combustion engine vehicles.