Democrats say Trump is illegally withholding state EV charging funds

12 February 2025 - 09:30 By Reuters
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On US President Donald Trump's first day in office, he took aim at electric vehicles, saying he was halting distribution of unspent government funds for vehicle charging stations from the $5bn national electric vehicle infrastructure fund.
On US President Donald Trump's first day in office, he took aim at electric vehicles, saying he was halting distribution of unspent government funds for vehicle charging stations from the $5bn national electric vehicle infrastructure fund.
Image: Andrew Harnik/Getty Images

A group of nine senators on the environment and public works committee said on Tuesday President Donald Trump's administration is illegally withholding $3bn (R55,542,698,400) in previously awarded funds to states for electric vehicle charging.

On Thursday, the US transportation department said it was suspending the EV charging programme and rescinding approval of state EV charging plans pending a new review.

The Democratic senators on the committee led by senator Sheldon Whitehouse said the action was in “blatant disregard of the law”. Whitehouse asked for emails that would show if Trump's adviser and Tesla CEO Elon Musk was involved in the decision.

A spokesperson for transportation secretary Sean Duffy did not immediately comment. Tesla did not immediately respond to a request for comment.

On Friday, a group representing automakers and electric vehicle charging companies called on USDOT to quickly restore funding, calling for action “to quickly resume the critical work of the programme and minimise uncertainty for states and their businesses”.

On Trump's first day in office, he took aim at electric vehicles, saying he was halting distribution of unspent government funds for vehicle charging stations from the $5bn (R92,561,242,000) national electric vehicle infrastructure fund.

Trump also revoked a 2021 executive order signed by former president Joe Biden that sought to ensure half of all new vehicles sold in the US by 2030 were electric. Trump also called for ending a waiver for states to adopt zero-emission vehicle rules by 2035 and said his administration would consider ending EV tax credits.

Biden's 50% target, which was not legally binding, had won the support of US and foreign carmakers.

Trump has said he could take other actions on EVs, including seeking to repeal the $7,500 (R138,856) consumer tax credit for EV purchases as part of broader tax reform legislation.

Last month, Duffy directed US regulators to rescind landmark fuel economy standards issued under Biden that aimed to drastically reduce fuel use for cars and trucks and highway climate rules.


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