NEVI Program Freeze Shakes EV Charging Industry

Many countries — including mainland China, India and the European markets — are looking for innovative ways to support electric vehicle (EV) charging infrastructure development. But some recent US government announcements have the potential to delay the country’s progress in electromobility by several years. The suspension of the National Electric Vehicle Infrastructure (NEVI) program by the Trump administration is one such decision that has sent ripples through the EV charging industry.

In early February, the Federal Highway Administration (FHA) halted new funding for state programs to install EV charging stations. The FHA said that the new leadership of the United States Department of Transportation (USDOT) has decided to review the policies underlying the implementation of the NEVI Formula Program.

As a result, no new funding commitments can be made under the NEVI Formula Program until the updated final guidance is issued and new state plans are submitted and approved.

The NEVI program, established under the Biden administration's Bipartisan Infrastructure Law, aimed to invest $5 billion over five years to develop a national electric vehicle charging network.

The goal was to set up 500,000 EV chargers by 2025 along major highways and supporting jurisdictions that struggle to afford charging infrastructure costs. It has been reported that more than $3 billion of the allocated funds have already been sent to states.

The NEVI program provided funding to states to strategically deploy EV chargers and to establish an interconnected EV charging network. Funding was available for up to 80% of eligible project costs, including the acquisition, installation and network connection of EV chargers, proper operation and maintenance of EV chargers, and long-term EV charger data sharing.

Charge Ahead Partnership, a coalition of businesses, associations and individuals that share the common goal of efficiently developing a charging network for EVs across the United States, said that the NEVI program helped initiate investments in high-speed EV charging stations at strategic locations such as gas stations and truck stops.

In addition to suspending the NEVI program, the General Services Administration (GSA) also announced plans to shut down federal EV charging infrastructure. This decision affects over 8,000 charging ports across the US, impacting both government-owned and privately owned EVs used by federal employees. The GSA has deemed these charging stations "not mission-critical", aligning with the administration's broader stance against EV-related initiatives.

The Trump administration's decision to halt the NEVI program has raised concerns that it could hinder the nation's progress toward a cleaner transportation future. The suspension not only affects new charger installations but also creates uncertainty for ongoing projects, as states are directed to stop spending allocated funds.

The immediate impact of the two major decisions will be on the expansion pace of EV charging infrastructure in the US. Projects that were being planned, keeping in mind the NEVI program, will most likely be shelved or deferred until the new guidance is announced.

Such steps may even hamper the private investments into this domain owing to lack of support from the government. In the long term, the lack of a widespread national electric vehicle charging network will have a direct impact on the uptake of EVs and the electric vehicle industry overall in the United States.

As per S&P Global Mobility’s EV Charging Infrastructure Forecast released in December 2024, the US EV charging station pool was expected to grow at a compound annual growth rate (CAGR) of nearly 44% between 2024 and 2030 to nearly 2 million stations, including OEM-specific stations. This rapid growth was closely linked to broader automotive industry trends that emphasize electrification and sustainability.

According to Claudio Vittori, Manager, Charging & E-Mobility Components Research at S&P Global Mobility, “The EV charging infrastructure market has been significantly positively impacted by national and regional incentive programs worldwide, including in the US. However, in many cases, the installed charging stations have yet to achieve the utilization rates necessary for long-term financial sustainability.

"Given the current market conditions and the anticipated slowdown in the automotive industry in the coming months, the lack of adequate support for charging infrastructure deployment could significantly affect the deployment roadmap in the country.”