State Attorneys General Sue to Restore Frozen Federal EV Charging Grants, Putting Dealer EV Rollout at Risk





Summary


Overview

A coalition of state attorneys general led by California filed suit against the U.S. Department of Transportation, seeking to restore federal funding for electric vehicle charging infrastructure that was allegedly halted without notice. The case argues that freezing two congressionally authorized grant programs violates legislative intent, undermines state and local planning, and threatens projects already underway tied to the broader EV transition.

Programs at Issue

  • Charging and Fueling Infrastructure (CFI) Grant Program (established under the Infrastructure Investment and Jobs Act in 2022)
  • EV Charger Reliability and Accessibility Accelerator (established under the Infrastructure Investment and Jobs Act in 2022)

Key Allegations

  • Breaches the constitutional separation of powers by blocking funds Congress authorized and appropriated.
  • Federal funding freeze imposed without public explanation, formal process, or rulemaking, creating regulatory uncertainty.
  • Immediate practical impacts: stalled procurement, hiring, and construction preparation on projects that received planning funds.

Who Is Suing

The lawsuit is led by California AG Rob Bonta, co-led by Colorado AG Phil Weiser and Washington AG Nick Brown, and joined by 14 other states, including Arizona and Wisconsin.

Cited Impacts on States and Stakeholders

  • Projects paused across states; for example, Colorado State University received $1 million for planning but is awaiting additional awards to proceed.
  • Potential slowdown of public charging deployment affecting consumers, dealers, and automakers by exacerbating range anxiety and reliability concerns.
  • Complications for long-term planning, procurement, and construction cycles, and difficulty leveraging private capital—especially in rural and underserved areas.

Legal and Policy Context

  • Follows an earlier suit over cuts to the National Electric Vehicle Infrastructure (NEVI) Formula Program, where a federal court in Washington state issued a preliminary injunction blocking reductions.
  • The new case targets different grant authorities but raises similar claims of executive overreach into congressionally approved initiatives.
  • Comes amid reduced consumer incentives for EVs, heightening concerns about momentum for charging buildouts.

DOT Response/Status

The article notes no formal DOT response and reports that the programs were halted without public explanation. In prior disputes, federal officials have cited shifting priorities or program design, while courts have sometimes required agencies to maintain funding levels during litigation.

Market and Adoption Considerations

  • California has sold more than 2.4 million EVs, including trucks, delivery vans, and buses, underscoring the need for dependable public charging.
  • Dealers indicate reliable charging is essential for first-time buyers and those without home charging, influencing sales forecasts and inventory decisions.
  • Funding at stake is described as running into the billions, though the article does not specify exact totals.

What Happens Next

The outcome will hinge on whether DOT can pause the programs without contravening appropriations and the IIJA’s structure. The attorneys general seek to lift the freeze and restart approvals, enabling delayed projects to resume procurement and construction. Stakeholders are watching for interim orders that could unblock pending applications or protect previously awarded planning efforts.

Source


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