California and 16 States Sue Trump Administration Over Withheld $3 Billion EV Charging Funds

Seventeen states, led by California, Colorado, and Washington, have sued the Trump administration for allegedly withholding over $3 billion in electric vehicle (EV) charging infrastructure funds. Filed in the U.S. District Court in Washington State, the lawsuit challenges the suspension of the National Electric Vehicle Infrastructure (NEVI) Formula Program, a $5 billion initiative authorized by Congress. The plaintiffs claim this action violates constitutional principles by overriding congressional authority and threatens state transportation plans. The lawsuit seeks to declare the funding freeze illegal and prevent further withholding of funds.

Legal Claims and Allegations

The lawsuit centers on the Trump administration’s directive issued in January 2025, which ordered federal agencies to pause disbursement of funds appropriated under the Bipartisan Infrastructure Law and the Inflation Reduction Act. In February, the Federal Highway Administration (FHWA) followed up by revoking previously approved state plans and halting the release of NEVI program funds.

According to the complaint, this action unlawfully overrides congressional appropriations and violates the U.S. Constitution’s separation of powers. The plaintiffs are seeking a court order to declare the administration’s actions illegal, vacate the funding freeze, and permanently prevent the federal government from withholding the funds.

“The President continues his unconstitutional attempts to withhold funding that Congress appropriated to programs he dislikes,” said California Attorney General Rob Bonta. “We won’t sit back while the Trump administration violates the law.”

States and Officials Involved

The lawsuit is spearheaded by attorneys general from California, Colorado, and Washington, and joined by Arizona, Delaware, Hawaii, Illinois, Maryland, Minnesota, New Jersey, New Mexico, New York, Oregon, Rhode Island, Vermont, Wisconsin, and the District of Columbia.

California Governor Gavin Newsom, a vocal critic of the funding freeze, stated, “President Trump’s illegal action withholding funds for electric vehicle infrastructure is yet another Trump gift to China — ceding American innovation and killing thousands of jobs.”

New York, which had been awarded over $175 million in NEVI funds, claims that $120 million is currently being withheld. California stands to lose more than $300 million, while Washington could forfeit $71 million, according to state officials.

Background on the NEVI Program

The NEVI Formula Program was established under the 2021 Bipartisan Infrastructure Law, allocating $5 billion over five years to help states build a nationwide network of EV charging stations. The program aimed to reduce range anxiety among EV drivers, support the transition to zero-emission vehicles, and stimulate job creation in the clean energy sector.

By early 2025, approximately $3.3 billion of the funds had already been made available to states. Many states had begun implementing their EV infrastructure plans, with some already receiving reimbursements and others in the process of contracting and permitting.

The Trump administration’s decision to halt the program is part of a broader rollback of environmental policies enacted under the Biden administration. In his first week back in office, President Trump signed executive orders to withdraw from the Paris climate agreement, reverse EV sales targets, and end environmental justice initiatives.

Federal Response and Industry Reaction

The U.S. Department of Transportation and the FHWA have not issued formal comments on the lawsuit. However, the administration has defended its actions as part of a broader review of federal spending and regulatory priorities.

Industry groups, including automakers and EV charging companies, have expressed concern over the funding freeze. In February, a coalition of industry stakeholders urged the Department of Transportation to restore the NEVI funds, warning that the delay could disrupt infrastructure development and market confidence.

Tesla, one of the largest beneficiaries of the NEVI program, had received millions in federal support to expand its charging network. Despite Elon Musk’s alignment with some of Trump’s cost-cutting policies, the company’s infrastructure projects are also affected by the funding halt.

Statements from State Leaders

California Attorney General Rob Bonta emphasized the broader implications of the funding freeze: “These funds were going to be used to shape the future of transportation. It’s short-sighted and unlawful to revoke them.”

Governor Newsom echoed this sentiment, stating, “Instead of hawking Teslas on the White House lawn, President Trump could actually help Elon — and the nation — by following the law and releasing this bipartisan funding.”

The lawsuit also highlights the impact on state-level climate and transportation goals. California, for example, plans to phase out the sale of new gas-powered vehicles by 2035 and requires a significant expansion of EV charging infrastructure to meet that target. Washington and New York have adopted similar zero-emission vehicle mandates.

Broader Legal and Political Context

This legal challenge is the latest in a series of confrontations between Democratic-led states and the Trump administration over environmental and infrastructure policy. The plaintiffs argue that the administration’s actions not only undermine state autonomy but also set a dangerous precedent for executive overreach.

The case will test the limits of presidential authority over congressionally appropriated funds and could have significant implications for future infrastructure and climate-related programs.

References

• California leads lawsuit over Trump’s EV charging funding change
• More than a dozen states sue Department of Transportation over EV charging station funds
• States sue over Trump blocking billions of dollars for electric vehicle charging
• California sues Trump administration for illegally withholding billions in bipartisan infrastructure funds: ‘Another Trump gift to China’ | Governor of California
• California sues Trump admin for blocking EV charging funds
• States sue the Trump administration for blocking funds for electric vehicle charging