A coalition of sixteen American states and the District of Columbia has launched a major federal lawsuit against President Donald Trump's administration. They allege the government is unlawfully withholding more than $2 billion in funding designated for two critical electric vehicle (EV) charging programmes.
Legal Battle Over Congressionally Approved Funds
The lawsuit, filed on Tuesday in the U.S. District Court for the Western District of Washington, represents the latest escalation in an ongoing dispute. The states argue that the funds were obligated to them by Congress under the previous Biden administration. However, they claim the current Department of Transportation and Federal Highway Administration are illegally "impounding" the money.
California Attorney General Rob Bonta led the charge, stating in a release: "The Trump Administration's illegal attempt to stop funding for electric vehicle infrastructure must come to an end." He warned the move would stall efforts against air pollution, slow innovation, hinder green job creation, and limit access to clean transport.
The Department of Transportation has not yet provided a comment on the legal action.
History of Hostility Towards EV Policies
This legal challenge did not emerge in a vacuum. The Trump administration has demonstrated consistent opposition to electric vehicle initiatives, dismantling several cleaner transport policies established under President Biden. In February, it ordered states to halt spending on EV charging allocated by the bipartisan infrastructure law passed earlier.
A prior lawsuit in May challenged the withholding of funds from the $5 billion National Electric Vehicle Infrastructure (NEVI) programme. A federal judge subsequently ordered the administration to release much of that funding for charger projects across more than a dozen states.
Tuesday's separate lawsuit specifically targets two other programmes:
- $1.8 billion for the Charging and Fueling Infrastructure Grant programme.
- Approximately $350 million in Electric Vehicle Charger Reliability and Accessibility Accelerator funding.
The coalition is led by the attorneys general of California and Colorado, joined by officials from Arizona, Delaware, Illinois, Maryland, Massachusetts, Michigan, New Jersey, New York, Oregon, Rhode Island, Vermont, Washington, Wisconsin, the District of Columbia, and the Governor of Pennsylvania.
Broader Context of Regulatory Rollbacks and Slowing Sales
The lawsuit unfolds against a backdrop of significant regulatory shifts. Upon returning to office, President Trump swiftly moved to end what he termed Biden's "EV mandate." While Biden's policies aimed for half of new US vehicle sales to be electric by 2030 through stringent emissions rules, they did not force consumers to buy or automakers to sell EVs.
The Trump administration has proposed rolling back tailpipe emissions and fuel economy standards, cut fines for non-compliant automakers, and eliminated consumer tax credits of up to $7,500 for EV purchases. The President has also made factually incorrect statements about the federal charging programmes' status.
At a 3rd December press conference, Trump claimed, "In certain parts of the Midwest, they spent -- to build nine chargers they spent $8 billion. So, that wasn't working out too well." In reality, only a fraction of the obligated funds have been spent due to the withholding.
Concurrently, EV sales growth in the US has slowed, with mainstream buyers concerned about charging availability and high prices. According to Kelley Blue Book, the average transaction price for a new EV was $58,638 last month, compared to $49,814 for all new vehicles.
Automakers are adjusting strategies. Ford Motor Co. recently announced a pivot from its multi-billion dollar electrification plan towards more hybrids and efficient petrol vehicles. Honda Motor Co. also signalled a significant step back from its EV efforts this spring.
This legal action underscores the deep political divide on climate and transport policy in the United States, with billions in infrastructure funding and the nation's clean energy transition hanging in the balance.
