California and 16 other states have taken the US government to court for blocking a $5 billion fund that was meant to support electric vehicle (EV) chargers. This money was already approved by Congress, but it’s now being held back. Many believe this decision could hurt America’s progress in the EV sector—and help China instead.
What’s the $5 Billion EV Charger Fund All About?
The NEVI (National Electric Vehicle Infrastructure) program was created to make it easier for people across the US to own and charge electric vehicles. It was part of a bigger law known as the Infrastructure Investment and Jobs Act, signed by President Biden.
This program was supposed to spread charging stations nationwide so that more people could switch to EVs, save money on fuel, and enjoy cleaner air.
Why Is Everyone Upset Now?
In early 2025, the Federal Highway Administration (FHWA)—under the influence of former President Trump—froze the funds. That means states could no longer use the money, even though it was legally assigned for EV charging.
The move shocked many because Congress had already passed the law. People are now calling it illegal and accusing Trump of putting his personal agenda above the nation’s interest.
States and Nonprofits Join Forces
On May 7, California and 16 other states filed a lawsuit. Later, groups like the Sierra Club, Earthjustice, and Plug In America joined in. Then on May 22, the Government Accountability Office (GAO) confirmed that freezing the funds was not legal.
States involved in the lawsuit include:
California, Colorado, Washington, New York, New Jersey, Hawaii, Illinois, Maryland, Minnesota, Vermont, Oregon, Wisconsin, Arizona, Rhode Island, Delaware, New Mexico, and the District of Columbia.
How Tesla Got Pulled Into This
Tesla used to only allow its cars to charge at Superchargers, but the NEVI law pushed it to open its charging system to other car brands. That’s how the NACS standard was created. The industry began adopting it, which helped solve many EV charging issues.
But now, with the funding paused, even Tesla’s chargers and future projects are stuck in limbo. It also means EV adoption in many regions could slow down.
Governor Newsom Speaks Out
California Governor Gavin Newsom called the funding freeze a “gift to China.” He said that by stopping this money, the US is falling behind in EV innovation—a sector where China is already leading.
“This is another Trump gift to China. He’s blocking American innovation and killing job opportunities,” said Newsom.
What About Biden’s EV Support Plan?
President Biden introduced the Inflation Reduction Act to boost the EV industry while also cutting the country’s deficit. This law led to billions of dollars in clean energy investments and created thousands of jobs.
But once again, Trump has shown resistance to this law, too. He reportedly asked oil companies to fund his campaign in exchange for cutting back EV support, which many believe would only make EVs more expensive.
Musk’s Strange Support
Even though Trump’s actions hurt the EV industry, Elon Musk—CEO of Tesla—has donated millions to support him. This surprises many since Musk’s own company stands to lose if the EV market slows down.
Freezing NEVI funds could block Tesla’s access to government support, even after it made big changes to qualify.
EV Charging Across the US at Risk
Several EV charging stations were already being built across America under the NEVI plan. Some are even finished. But with the money now on hold, many of those projects may stop. That means drivers in rural or less-developed areas might find it harder to own an EV.
In fact, the government had also removed thousands of paid-for EV chargers before—causing more problems for clean transportation.
What Does the Lawsuit Want?
The group of states and environmental nonprofits wants the court to order the government to release the money and stop any further delays. Their goal is to get the EV charger plans back on track—because a cleaner, cheaper, and better transport system should not be a political game.
Conclusion:
The $5 billion NEVI fund was meant to help Americans adopt EVs and make the US cleaner and more energy independent. But now, politics has paused that progress. With 17 states and several nonprofits fighting back, the outcome of this lawsuit could decide how fast—or slow—the US moves toward an electric future.
I am Muhammad Waqas and I am dedicated to promoting sustainable vehicles. Observing EV trends, studying the intricacies of the EV industry, and promoting new EV launches fall under my expertise. I have been working in this field for 5 years and making efforts for a sustainable and healthy future.
