17 States Sue Government Over Halted EV Charging Station Funds

A coalition of 17 states, spearheaded by California, Colorado, and Washington, has initiated legal action against the federal government over the withholding of billions of dollars designated for electric vehicle (EV) charging infrastructure. This lawsuit, filed in a Seattle district court, centers on a 2021 bipartisan infrastructure program that allocated $5 billion to expand EV charging stations across the United States.

Initially, these funds were expected to be distributed steadily to states to facilitate the buildout of charging stations, crucial for supporting the growing number of EVs on American roads. However, since early February, the Federal Highway Administration (FHWA), reportedly under directives from the presidential administration, has paused the release of a significant portion of these funds.

The lawsuit highlights that as of February 6, 2025, the FHWA had made $3.27 billion available for obligation for fiscal years 2022 through 2025. Of this, approximately $1.1 billion was allocated to the plaintiff states. Yet, the FHWA is withholding about $2.74 billion of the total $3.27 billion in funds, effectively depriving these states of access to nearly $1 billion in available funds.

This funding freeze poses significant risks to the expansion of EV charging infrastructure, which is essential for enabling long-distance travel and broader EV adoption. Experts warn that halting government-funded EV station projects could incur costs upwards of $1 billion, reflecting the economic and environmental setbacks of stalled progress.

The transition to electric vehicles has been gaining momentum, with over 300,000 EVs sold in the U.S. from January to March alone. Charging stations are a critical component of this shift, providing the infrastructure needed for convenient and reliable EV use. Moreover, the widespread adoption of EVs is a key strategy in combating global climate change by reducing greenhouse gas emissions.

Since taking office, the current presidential administration has sought to halt or slow many climate-forward initiatives introduced during the previous administration. In response, states and cities are increasingly stepping up to fill the leadership void on climate action, as exemplified by this lawsuit and other proactive measures to advance clean energy and transportation.

Broader Implications for EV Infrastructure and Climate Policy

The lawsuit underscores the tension between federal policy shifts and state-level ambitions to accelerate EV adoption and infrastructure development. The withholding of funds threatens to slow the deployment of charging stations, which are vital for supporting the increasing EV market and meeting climate targets.

For businesses, utilities, and local governments, this uncertainty complicates planning and investment decisions related to EV infrastructure. It highlights the importance of diversified funding strategies and the potential role of private sector partnerships to maintain momentum in EV infrastructure expansion.

As the EV market continues to grow rapidly, reliable and accessible charging infrastructure will remain a cornerstone of the transition to sustainable transportation. The legal challenge by states signals a critical pushback against federal delays and a commitment to advancing clean energy solutions despite political headwinds.