States sue Trump administration for withholding billions in electric vehicle funding

BURLINGAME, Calif. (CN) — A coalition of 16 states and the District of Columbia filed a lawsuit Wednesday against the Trump administration over claims it unlawfully withheld billions in congressionally-approved funding previously slated for electric vehicle charging infrastructure across all 50 states.

California Attorney General Rob Bonta announced the lawsuit, filed in the Western District of Washington state federal court, while surrounded by EV chargers in a parking lot located in Burlingame, California.

“Once again, Trump’s actions go beyond the scope of his presidential power,” Bonta said at the press conference. “We have always said the president has a great deal of authority as the president of the United States, but he can only do lawful things. Not unlawful things.”

The states, led by California, Washington state and Colorado, claim that the Trump administration overstepped its powers by directing the Federal Highway Administration to rescind the National Electric Vehicle Infrastructure Formula program, which included more than $5 billion worth of grants to all 50 states to support the installation of EV charging infrastructure.

“Instead of hawking Teslas on the White House lawn, President Trump could actually help Elon — and the nation — by following the law and releasing this bipartisan funding,” California Governor Gavin Newsom said in a statement.

The states say that the White House’s directive was arbitrary and capricious, and thus violated the federal Administrative Procedure Act and the U.S. Constitution.

“This infrastructure is critical to the success of plaintiff states’ environmental, public health, and transportation programs — projects Congress actively chose to support in enacting the IIJA and establishing the NEVI Formula Program. The harms to plaintiff states will continue and become increasingly damaging if unabated,” the states write in the suit.

The states name the U.S. Department of Transportation and Transportation Secretary Sean Duffy, as defendants, along with the Federal Highway Administration and its administrator.

Bonta and his co-plaintiffs are seeking a preliminary injunction to halt the withholding and restore the program’s funds to the states.

“The president’s illegal claw-backs aren’t spending reductions — they’re cash grabs that rob taxpayers, steamroll Congress, and stifle critical economic development,” Washington state Attorney General Nick Brown said in a statement. “Washingtonians are switching to electric vehicles at one of the highest rates in the nation. They deserve safe, reliable infrastructure to get their families from Point A to B.”

At the California press conference, Bonta said that the Highway Administration’s actions could cost California more than $300 million, eliminate thousands of jobs and damage the still-emerging EV industry.

“And these actions are coming at a time when we’re facing, of course, a climate crisis that’s getting worse by the day. We need to do more, not less,” Bonta said.

The National Electric Vehicle Infrastructure Formula program was signed into law by former President Joe Biden in 2021 with the intent to build an interconnected network of highways with EV charging stations across the nation.

The program was part of Biden’s bid to accelerate the country’s transition away from fossil fuel-powered vehicles, and multiple rounds of funding were planned from 2022 to 2026.

In January, President Donald Trump signed Executive Order 14154, titled “Unleashing American Energy,” in which he announced several directives impacting the energy industry.

In early February, the Department of Transportation announced it would be reviewing the EV program policies, and the Federal Highway Administration immediately suspended all program funding.

California, Washington state and Colorado are joined in the legal action by attorneys general from Arizona, Delaware, the District of Columbia, Hawaii, Illinois, Maryland, Minnesota, New Jersey, New Mexico, New York, Oregon, Rhode Island, Vermont and Wisconsin.