State EV Funding Restored with New Guidance in Response to Court Order

The Trump administration has released new guidance for an electric vehicle charging infrastructure program established as part of the 2021 Infrastructure Investment and Jobs Act (IIJA). The new guidance comes after program funding had been suspended earlier this year in response to an Executive Order. A subsequent federal court order in response to a lawsuit brought by a coalition of state attorneys general required the U.S. Department of Transportation to release the funding.

New IIJA Funding Guidance Issued, But Uncertainty Remains

The new guidance will allow funding to continue under new rules that eliminated previous requirements focused on reaching underserved communities and using union labor. Under IIJA, $5 billion was committed to the program. The next fiscal year (FY26), beginning in October, is the final year of funding through IIJA, with states slated to receive as much as $1 billion.

Despite the action by the administration, future funding remains in question. During deliberation on an FY26 funding bill for transportation programs, the House Appropriations Committee approved provisions that reallocate some of IIJA's "advance" appropriations. While the Senate rejected that approach in its bill, it remains to be seen how funding for next year will be resolved.

Officials Say New Rules Streamline Program

DOT officials said the new guidance would streamline the program and improve outcomes. Transportation Secretary Sean Duffy commented that while he does not "agree with subsidizing green energy," [U.S. DOT] will respect Congress's will." This action may provide greater certainty for other IIJA programs that have faced funding uncertainty. IIJA and its surface transportation authorization expire in 2026.