A federal judge has ruled that the U.S. Department of Transportation (DOT) unlawfully withheld approximately $1 billion in funding for the National Electric Vehicle Infrastructure (NEVI) Formula Program from 20 states and the District of Columbia. The decision comes after a multi-state lawsuit, which included Vermont as one of the plaintiffs.
The NEVI Formula Program was established by Congress through the 2021 Infrastructure Investment and Jobs Act, allocating $5 billion to support the development of electric vehicle charging infrastructure across the country. States had begun implementing their plans when President Trump issued an executive order on his first day in office instructing federal agencies to halt the release of NEVI funds. Following this directive, DOT stopped distributing program funds.
In May, a coalition of states filed suit against DOT, leading to a preliminary injunction issued by U.S. District Court Judge Tana Lin in June. Seven environmental non-profit organizations also participated in the litigation as plaintiff-intervenors.
Judge Lin’s summary judgment order found that both DOT and the Federal Highway Administration (FHWA) acted outside their legal authority and described their actions as arbitrary and capricious. She prohibited DOT and FHWA from suspending or revoking approved state electric vehicle infrastructure plans or withholding NEVI funds for reasons not specifically authorized by Congress under the IIJA.
“Such capriciousness runs counter to the Administrative Procedure Act; it is simply not how things are lawfully done,” Judge Lin wrote in her order.
The coalition behind the lawsuit includes Attorney General Charity Clark along with attorneys general from Arizona, California, Colorado, Delaware, Hawai‘i, Illinois, Maryland, Michigan, Minnesota, New Jersey, New Mexico, New York, North Carolina, Oregon, Rhode Island, Washington, Wisconsin; governors from Kentucky and Pennsylvania; and several environmental groups such as Sierra Club and Natural Resources Defense Council.
