Federal Judge Rules U.S. DOT Illegally Withheld $1 Billion In EV Charging Funds

A federal judge has ruled that the U.S. Department of Transportation (DOT) unlawfully withheld approximately $1 billion in electric vehicle charging infrastructure funding from 20 states and the District of Columbia. The decision marks a victory for a coalition of states co-led by Washington, California, and Colorado that sued the federal government over its suspension of the National Electric Vehicle Infrastructure (NEVI) Formula Program.

The ruling stems from a lawsuit filed in May, following an executive order issued by President Trump on his first day in office. The order directed federal agencies to pause implementation of several programs, including the NEVI Formula Program, which was created under the 2021 Infrastructure Investment and Jobs Act (IIJA). Congress had allocated $5 billion for the NEVI program to accelerate the development of a nationwide network of electric vehicle charging stations.

In June, U.S. District Court Judge Tana Lin issued a preliminary injunction that required DOT to release the halted NEVI funds. On Jan. 23, Judge Lin issued a final ruling granting summary judgment in favor of the states, stating that the DOT and the Federal Highway Administration (FHWA) acted outside the scope of the law.

“Such capriciousness runs counter to the Administrative Procedure Act; it is simply not how things are lawfully done,” Judge Lin wrote in her decision.

The court permanently barred the DOT and FHWA from suspending or revoking any approved state electric vehicle infrastructure deployment plans and from withholding funding without legal authority granted by Congress through the IIJA.

Washington Attorney General Nick Brown emphasized the ruling’s importance for clean energy progress.

“All across the state, Washingtonians are embracing clean energy and switching to electric vehicles, and they need a robust network of charging stations,” said Brown. “That’s why my

team and I have fought so hard to make sure the federal government follows the law and provides the funding that Congress intended.”

The lawsuit was filed by the attorneys general of Washington, California, and Colorado, and joined by attorneys general from Arizona, Delaware, Hawai‘i, Illinois, Maryland, Michigan, Minnesota, New Jersey, New Mexico, New York, North Carolina, Oregon, Rhode Island, Vermont, Wisconsin, and the District of Columbia. The governors of Kentucky and Pennsylvania also joined as plaintiffs.

Seven environmental nonprofit organizations also participated in the case as plaintiff-intervenors: Sierra Club, Natural Resources Defense Council, Climate Solutions, Southern Alliance for Clean Energy, CleanAIRE NC, West End Revitalization Association, and Plug In America.

The decision ensures that states can move forward with plans to expand electric vehicle charging infrastructure without further federal interference.