EV Mandate Funds Freeze Now Ruled Illegal

Court Blocks Freeze on EV Charging Funds, Upholding Federal Law

Federal Judge Sides with States in EV Mandate Case

A federal judge has ruled that the U.S. Department of Transportation (DOT) cannot freeze electric vehicle (EV) infrastructure funding that Congress approved. The court found that DOT’s actions went beyond its legal authority and violated the law. The ruling is a key development in the ongoing legal battle over the federal EV mandate.

The case centered on the National Electric Vehicle Infrastructure (NEVI) Formula Program. This program was part of the 2021 Infrastructure Investment and Jobs Act (IIJA). It provided $5 billion to help states build EV charging stations across major highways.

NEVI Program Meant to Carry Out the Mandate

Congress created the NEVI Formula Program to support the national EV mandate and reduce “range anxiety” for EV drivers. This concern arises when drivers worry about not finding a nearby charging station.

Under the EV mandate in the IIJA, DOT was required to provide states with funding. States could use the funds to build, operate, and maintain EV chargers. They were also required to collect and share data about the chargers’ performance.

In response, states submitted detailed deployment plans. They identified locations, partnered with private companies, and started work. Many states signed contracts and began construction, expecting that federal funding would be delivered.

Trump Administration Ordered a Pause on Funds

On January 29, 2025, President Trump signed Executive Order 14154. The order paused all EV mandate-related spending under the IIJA. It directed all agencies to stop disbursing funds until they reviewed spending rules to match the administration’s energy policies.

The following day, Transportation Secretary Sean Duffy issued DOT Order 2100.7. The order required that all DOT spending, including EV mandate programs, show a positive cost-benefit outcome. FHWA then canceled prior guidance, revoked approved state deployment plans, and froze disbursement of funds.

This freeze blocked access to more than $2.7 billion in NEVI funds that were part of the federal mandate.

Court Finds DOT Overstepped Authority in EV Mandate Freeze

Sixteen states and the District of Columbia sued the DOT and FHWA. They claimed the administration’s freeze on funds violated the Constitution and federal law.

The court agreed. U.S. District Judge Tana Lin ruled that “the Constitution exclusively grants the power of the purse to Congress, not the President.” She wrote that DOT “attempted to override the express will of Congress.”

The judge said DOT broke both the Constitution and the Administrative Procedure Act. The court issued an injunction stopping DOT from:

• Canceling or suspending state EV mandate deployment plans,
• Withholding EV mandate funds without legal cause,
• Freezing the NEVI program through any other means.

States Report Harm from EV Mandate Funding Freeze

Several states shared examples of how the EV mandate freeze disrupted ongoing work. In California, 21 charging sites were ready to go, but delays in funding kept agreements from being signed. A contractor withdrew from a project due to uncertainty.

Colorado signed contracts worth $18 million under its plan, but FHWA only obligated $8 million. The state warned it cannot finish several projects without access to the remaining funds.

In Delaware, the state is now short $49,875 on one approved EV mandate project. It will need to reallocate funds from other transportation projects to cover the gap.

New Jersey awarded a $21 million contract to build EV chargers at 19 locations. Without NEVI funds tied to the EV mandate, the state cannot move forward.

Ruling Reaffirms Congressional Control Over EV Mandate Funding

Judge Lin explained that even if DOT disagreed with the  mandate, it could not ignore the law. She pointed out that Congress, not the President, has the legal power to decide how funds are spent.

The judge emphasized that DOT did not follow the steps required by the IIJA before withholding funds. These steps include notifying states, consulting with them, and offering an appeal process.

She noted that the Constitution states, “administrative agencies are creatures of statute. They accordingly possess only the authority that Congress has provided.”

EV Mandate Program Expected to Resume

With this ruling, the court restored access to NEVI funds that had been blocked under the EV mandate freeze. States can now resume work on building out their EV charging networks.

DOT has not released a new statement in response to the decision. While the case may continue in court, the EV mandate program is now back in motion—for the time being.

TruckDriverNews.com will continue to follow developments in this ongoing fight over the future of EV mandates and related infrastructure spending.