California Sues Trump Over Blocked $5B EV Infrastructure Funds.
California, along with 16 other states, has filed a federal lawsuit against the Trump administration in a major legal battle with wide-ranging implications for state authority, environmental law, and federal oversight.
The coalition challenges the Federal Highway Administration’s (FHWA) alleged unlawful withholding of $5 billion in funds allocated by Congress to expand the nation’s electric vehicle (EV) charging infrastructure.
The Heart of the Dispute
On his first day back in office, President Trump signed an executive order directing federal agencies to cease the disbursement of funds appropriated under the Infrastructure Investment and Jobs Act (IIJA), widely known as the Bipartisan Infrastructure Law.
Among the halted programs was the National Electric Vehicle Infrastructure (NEVI) Formula Program, designed to accelerate the construction of EV charging stations across the country.
California officials assert that this directive has already deprived the state of more than $300 million, jeopardizing thousands of jobs and stifling a burgeoning sector crucial to meeting both environmental and economic goals.
Governor Gavin Newsom described the Trump administration’s action as “another Trump gift to China,” contending that obstructing domestic clean energy initiatives cedes technological leadership and job growth opportunities to international competitors.
Attorney General Rob Bonta accused the administration of dismantling environmental protections to favor fossil fuel interests.
"The President continues to roll back environmental and climate change protections, this time illegally stripping away billions of dollars for electric vehicle charging infrastructure, all to line the pockets of his big oil friends.
The facts don’t lie: the demand for clean transportation continues to rise, and California will be at the forefront of this transition to a more sustainable, low-emissions future. California will not back down, not from Big Oil, and not from federal overreach.”
The lawsuit contends that the FHWA’s withholding of funds violates multiple constitutional provisions, ignores explicit Congressional appropriations, and undermines state efforts to combat climate change and foster economic growth in the clean energy sector.
If successful, the suit could reaffirm the limits of executive power in overriding legislative appropriations and set a critical precedent for state-federal relations concerning environmental policy and infrastructure development.
California has positioned itself as a national leader in zero-emission vehicles (ZEVs), with over 178,000 public and shared EV charging ports already installed and a comprehensive plan to expand this network significantly.
In addition to pursuing federal funds, the state has committed substantial resources of its own, including:
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$640 million toward zero-emission truck and bus infrastructure.
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$500 million to deploy 1,000 ZEV school buses.
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$1.3 billion allocated to public transit projects supporting clean transportation.
Governor Newsom recently announced additional legal challenges to federal tariffs and launched initiatives to fortify international trade relationships and protect California’s economic interests.
The outcome of this litigation could significantly impact not only the availability of EV infrastructure funding but also the constitutional balance between federal directives and state rights in environmental policymaking.
The NEVI program was originally designed to help build 500,000 EV chargers across the United States by 2030, a critical goal that could now be delayed by the administration’s actions.
California also has a statewide plan to phase out sales of new gas-powered vehicles by 2035. According to the International Energy Agency, global EV sales are projected to reach 45 million annually by 2030, underscoring the urgency of accelerating EV infrastructure development.
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