A coalition of 16 states, along with the District of Columbia, has filed a lawsuit against the U.S. government. This action comes in response to the Donald Trump administration’s suspension of two grant programs aimed at developing electric vehicle (EV) charging infrastructure.
Suspension Jeopardizes $1.8 Billion
According to a report by Reuters, the legal action initiated on Tuesday is being spearheaded by California, Washington, and Colorado.
It claims that the suspension by President Trump’s administration jeopardizes $1.8 billion in federal awards intended for state and local governments. The funds were part of a $1 trillion infrastructure law passed in 2022.
Hinders Progress Against Air Pollution
California Attorney General Rob Bonta criticized the move, stating that it hinders progress against air pollution and climate change. The lawsuit follows a previous court ruling in June that blocked the administration from withholding funds from a separate $5 billion EV charger infrastructure fund.
The Trump administration has also targeted electric vehicles by signing legislation to end the $7,500 EV tax credit and proposing reductions in fuel economy standards. These actions are part of a broader effort to ease the sale of gasoline-powered vehicles.
The lawsuit highlights ongoing tensions between state governments and the federal administration over EV infrastructure funding. Earlier this year, the Trump administration froze the $5 billion National Electric Vehicle Infrastructure (NEVI) program, affecting automakers like Tesla Inc. (NASDAQ:TSLA). This freeze was later challenged in court, leading to a ruling in favor of the states, mandating the release of funds.
In August, the administration announced new guidelines for distributing the $5 billion, following a legal battle. Meanwhile, the rollback of Corporate Average Fuel Economy (CAFE) standards has sparked criticism from figures like California Governor Gavin Newsom, who argues it allows other countries, particularly China, to dominate the EV market.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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