The NEVI Funding Saga: The Need, the Freeze, and the Challenge

On May 22, Southern Alliance for Clean Energy joined a coalition of environmental, consumer, and community organizations to challenge the Trump administration’s unlawful and indefinite freeze of billions in federal funding for the National Electric Vehicle Infrastructure (NEVI) Formula Program. In 2022, Congress allocated $5 billion for the program through the bipartisan Infrastructure Investment and Jobs Act (IIJA) to build electric vehicle charging stations every 50 miles on major corridors across all 50 states. However, in February, the Federal Highway Administration (FHWA), acting on behalf of the Trump administration and in violation of the Constitution, halted the funds from flowing with the issuance of a memorandum. The impact of these frozen funds to our region is significant. The Southeast’s portion of the funding totals over $ 679 million. 

NEVI funds are critical to increasing access to charging in the Southeast

The NEVI program was designed to increase access to high-speed charging infrastructure along the interstate system and build confidence among American drivers that electric vehicles can function just as reliably as internal combustion vehicles for long-distance travel. 

The fast charging network is not evenly nor densely distributed enough to currently achieve that goal. This is especially true in the Southeast. Currently, the Southeast lacks access to charging stations, with only 0.40 charging stations per 1,000 people. This lack of accessible charging keeps consumers from having the confidence to purchase and drive electric.

The NEVI funding to increase the number of high-speed charging stations is critically important to the Southeast for several reasons. 

• Southeast states have significantly underinvested in charging station deployment as a region. These formula funds would guarantee investment and increased access for EV drivers in our region.
• The Southeast has long stretches of highway in rural areas currently without access to highway charging stations. Just like the Rural Electrification Administration (REA) increased access to electrical power in rural America, NEVI would increase investments and economic opportunities to rural areas.
• Many of the electric vehicles (EVs) that the NEVI network would support are built in the Southeast. In fact, the Southeast is home to 31% of the national total labor force that manufactures EVs.
• The region relies heavily on tourists and snowbirds who require access to fast charging while driving an EV long distances on the highway. This funding would provide up to 80% of the funding to install charging that would help meet this need. 

Coalition Seeks to Restore Funds

Funds need to be restored so infrastructure that supports the freedom to choose healthier, lower-cost transportation is available to every American — especially for Southerners, particularly in rural communities, without access to reliable, high-speed charging.  

“We’ve spent years working to accelerate transportation electrification across the South — where clean mobility is critical for climate, health, and economic opportunity,” said Stephen Smith, Executive Director of the Southern Alliance for Clean Energy. “The NEVI Program is one of the most practical tools we have to help states build reliable, accessible EV charging where it’s needed most. Suspending it puts hard-won progress at risk and leaves Southern communities without the resources to lead in the transition to clean energy.”

The Federal Highway Administration and Department of Transportation acted without authority and illegally by refusing to disperse funds allocated by Congress. 

The Government Accountability Office (GAO), an independent non-partisan agency that works for Congress, agrees with this assessment of the situation. The watchdog recently found that the February Federal Highway Administration memo, directing freezing the NEVI Formula Program funds violates the Impoundment Control Act. However, the White House has subsequently ordered the Department of Transportation, the department where the Federal Highway Administration sits, to ignore the GAO ruling. 

Judge Orders Resumed Funding Distribution

On June 25, a federal judge in Washington issued a preliminary ruling ordering the Trump administration to restore NEVI Formula Program funding, unlocking about $1 billion in federal funds while the case moves forward. The order did not take effect until July 2 to provide the federal government an opportunity to appeal, which they did not. The order restores funding for 14 of the 17 Plaintiff States. The judge found that three states, Minnesota, Vermont, and the District of Columbia, did not provide sufficient evidence on how the freeze harmed them to qualify for relief. While the ruling is not a final decision, it’s a big win and forward momentum for the states getting EV charging projects moving forward. Read additional details in the joint press release from the NGO coalition.

SACE and allies are still awaiting a ruling on the motion to intervene. The coalition will continue to seek the nationwide restoration of NEVI funds to build EV charging stations along highways in every corner of the country.

We invite you to remain engaged in the process as this lawsuit winds its way through the court system. 

Electrify the South​ is a Southern Alliance for Clean Energy program that leverages research, advocacy, and outreach to promote renewable energy and accelerate ​the ​equitable ​transition to ​electric transportation throughout the Southeast. Visit ElectrifytheSouth.org to learn more and connect with us.

Additional information

Press release from advocates

Federal Judge Stays Freeze on Federal Funding for EV Infrastructure

Judge orders lifting of Trump administration’s ‘unlawful’ EV charging funds freeze

Federal judge lifts first Trump administration’s freeze on $1B in EV charging funds

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