EV Infrastructure Funds Frozen, What Happens to NEVI Funds Now?

U.S. DOT Suspends State Electric Vehicle Infrastructure Plans Amid Policy Review

Federal Highway Administration Halts NEVI Funding Approvals

The Federal Highway Administration has announced an immediate suspension of all state electric vehicle (EV) infrastructure deployment plan approvals under the National Electric Vehicle Infrastructure (NEVI) Formula Program. This decision, issued by the Federal Highway Administration (FHWA) on February 6, 2025, effectively halts the distribution of federal funds for new EV charging projects until further notice.

The suspension follows a policy review initiated by new leadership at U.S. DOT, which seeks to reassess the direction of the NEVI Formula Program and update the guidelines that govern state-level EV infrastructure plans. As a result, states must pause new obligations under the program until updated guidance is issued and their revised plans receive approval.

What is the National Electric Vehicle Infrastructure Formula Program?

The National Electric Vehicle Infrastructure (NEVI) Formula Program was created under the Infrastructure Investment and Jobs Act (IIJA), signed into law by President Biden in November 2021. The program provides $5 billion in federal funding over five years (2022-2026) to help states strategically deploy EV charging infrastructure and establish a nationally interconnected charging network.

Key objectives of the NEVI Formula Program include:

• Expanding high-speed EV charging stations along major highways and designated alternative fuel corridors.
• Helping states develop and implement EV infrastructure plans to support electric vehicle adoption.
• Requiring states to submit annual EV Infrastructure Deployment Plans for federal review and approval.
• Encouraging public and private investment in EV charging networks to meet growing demand.

Unlike other transportation funding programs, NEVI funds cannot be used until state deployment plans receive FHWA approval. With the recent suspension of plan approvals, the future allocation of these funds is now uncertain.

How Much NEVI Funding Has Been Awarded?

As of October 2024, nearly half a billion dollars in NEVI funds had been awarded to states for EV infrastructure projects. This includes approximately $330 million awarded in 2024 alone.

Since its inception, the NEVI program has played a significant role in jumpstarting investment in high-speed EV charging stations and helping states develop sustainable long-term EV infrastructure strategies. However, with the suspension of approvals, future funding allocations and project timelines could face delays.

NEVI Formula Program Faces Policy Review

The suspension of the NEVI Formula Program comes as part of a broader policy reassessment by U.S. DOT. The agency has rescinded the most recent NEVI Formula Program Guidance, issued on June 11, 2024, along with all prior versions.

FHWA has indicated that it is working on revising the NEVI guidance to align with current policy priorities and economic analysis standards. A draft version of the updated guidance is expected to be released for public comment in the spring of 2025, followed by a final version after reviewing stakeholder feedback.

Immediate Impact on State EV Infrastructure Projects

With the suspension of approvals, states can no longer move forward with new NEVI-funded projects until the updated guidance is finalized. However, FHWA has provided some assurances:

• Existing financial commitments will continue to be reimbursed, ensuring that ongoing projects with prior approval are not disrupted.
• States will not face penalties for failing to implement their previously approved plans during this suspension period.

Despite these assurances, the decision raises concerns for states that depend on NEVI funding to expand their EV charging networks and meet rising demand for electric vehicle infrastructure.

Next Steps for State Governments and EV Stakeholders

FHWA plans to release a draft of the revised NEVI Formula Program Guidance in spring 2025, allowing industry stakeholders and the public to provide input before finalization. Until that process is complete, states and private-sector partners in the EV infrastructure sector will face uncertainty about future federal funding.

For more information, FHWA has directed inquiries to Gary Jensen, Director of the Office of Natural Environment, via email at Gary.Jensen@dot.gov or phone at 202-366-2048.

The Road Ahead for Electric Vehicle Expansion

The suspension of NEVI plan approvals signals a potential shift in federal EV infrastructure policy. While the U.S. remains committed to expanding EV charging networks, the upcoming policy review could reshape funding priorities, eligibility requirements, and project selection criteria.

For now, the transportation and EV industries will have to wait for new guidance from FHWA—and see how this policy shift affects the future of electric vehicle adoption and infrastructure expansion across the United States.