When it comes to electric vehicle infrastructure funding, the Trump administration and a bunch of states keep ending up in court. The latest round started Tuesday when California, Washington, Colorado, and 13 other states plus the District of Columbia sued over suspended federal grants.
Another Round of Frozen Funds
The lawsuit targets the administration's decision to suspend two grant programs that were supposed to help state and local governments build EV charging infrastructure. We're talking about $1.8 billion in federal awards that came from that massive $1 trillion infrastructure law Congress passed back in 2022.
California Attorney General Rob Bonta didn't mince words, saying the suspension undermines efforts to combat air pollution and climate change. It's worth noting this isn't even the first time states have had to sue over frozen EV money. Back in June, a court ruled against the administration for withholding funds from a separate $5 billion EV charger infrastructure program.
Part of a Broader Pattern
The charging infrastructure fight is just one piece of a larger puzzle. The Trump administration has been systematically rolling back various EV incentives and regulations. That includes signing legislation to eliminate the $7,500 EV tax credit and proposing reductions to fuel economy standards, all designed to make life easier for gasoline-powered vehicles.
The $5 billion National Electric Vehicle Infrastructure (NEVI) program that got frozen earlier this year directly affected automakers like Tesla Inc. (TSLA). After states challenged that freeze in court and won, the administration had to release those funds and announced new distribution guidelines in August.
California Governor Gavin Newsom has been particularly vocal, arguing that rolling back fuel economy standards essentially hands the EV market to China on a silver platter. For now, the pattern seems clear: the administration freezes EV funding, states sue, and judges eventually tell the government to turn the money tap back on. Whether this latest lawsuit follows the same trajectory remains to be seen.
